Under CAPM, General electric sock has an expected return of 13.3%, given its beta of 1.3 and a risk-free rate of 3.4%. If the market risk premium drops by 150 basis points, what would be the new expected rate of return for GE stock
What is interest rate risk? What are the roles of a bond’s coupon and maturity in determining its level of interest rate risk?
What is the difference between a bond’s promised yield and its realized yield? Which is more relevant? When we calculate a bond’s yield to maturity, which of these are we calculating?
Rolling Company bonds have a coupon rate of 3.5 percent, 13 years to maturity, and a current price of $1,052.60 What is the YTM? The current yield?
Atlantis Fisheries has issued a zero coupon bond at a price of $410 per bond. Each bond has a face value of $1,000 at maturity in 20 years. If these zero coupon bonds are callable in 15 years at a call price of $625, what is their yield to call?