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The PAL Co. has 9.2 percent callable bonds outstanding with 23 years until maturity that currently sell for $974.84. What is the yield to call if the call can be made in 8 years at a price of $1,220? 

A 5.1 percent coupon bond has a face value of $1,000 and a current yield of 3.69 percent. What is the current market price?

All about OutlinesPick the description that best answers each question correctly.

True or False: The Interpretation step of the Writing Process is perhaps the most important because if a student misunderstands it, the rest of the steps will be negatively impacted.

You own a portfolio which is invested equally in two stocks and a risk-free security. The stock betas are 0.87 for Stock A and 1.24 for Stock B. Which one of the following will increase the portfolio beta, all else constant?

Compute the Macaulay duration of a 6.1% coupon, 3-year corporate bond that makes annual coupon payments and has a yield to maturity of 6.8%.

Bonds rated ________ or better (i.e. higher) by Standard & Poor’s are considered investment grade.

Based on the following information, what is the standard deviation on an equally weighted portfolio of these three stocks?State of Probability of   Rate of Return if State OccursEconomy State of Economy  Stock A Stock B Stock CBoom           0.35                    0.15    0.33     0.18Bust             0.65                  –0.30  –0.21   –0.06

Which one of the following will decrease the current yield of a bond?

A coupon bond that pays interest semiannually has a par value of $1,000, matures in 10 years, and has a yield to maturity of 9%. If the coupon rate is 8%, the price of the bond today will be ________.