What is the current yield of a 1000 par value 4 annual


1. What is the current yield of a $1,000 par value, 4% annual coupon bond that is selling for $950?

4.00%.

4.50%.

4.21%.

3.75%.

2. A portfolio has a total return of 19.5%, a beta of 1.6, and a standard deviation of 18.6%. If the risk free rate is 2.5% and the market return is 10.2%, then Treynor's measure of this portfolio's performance is

13.72%.

12.19%.

11.20%.

10.63%.

3. A bond has a yield to maturity of 4.5% and duration of 22 years. What is its modified duration?

21.05 years

20.35 years

19.00 years

22.00 years

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Financial Management: What is the current yield of a 1000 par value 4 annual
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