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Unformatted text preview: 4) A 15 year fixed coupon bond with 12 years left until maturity has a coupon rate of 8% paid semi-annually. If the price of this bond is $1,050, what is its current yield? 5) Google Inc. has a Beta (β) equal to 2.5. If the market return is 10% and the risk free rate is 3%, what is the required rate of return for Google? What is its risk premium? 6) A consol bond has a yield of 6% and has a coupon rate of 8% paid semi-annually. What is the price of this bond?...
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- Fall '11
- Corporate Finance