1. Los Angeles Times has issued bonds that have an 10% coupon rate, payable quarterly. The bonds mature in 9 years, have a face value of $1000, and a yield to maturity of 8.0%. What is the price of the bond?
2. You need to borrow $45,000 to buy a new truck. The current loan rate is 5,25% compounded monthly. You decide you want to pay the loan off in equal monthly payments over 5 years. What is the size of your monthly payment?
3. If the risk-free rate of return is 4.5% and a random stock has a beta of 1.2, with a required rate of return of 8%, what is the market risk premium?