Which of the following statements is NOT CORRECT?
a. If a bond is selling at its par value, its current yield equals its yield to maturity.
b. If a bond is selling at a discount to par, its current yield will be less than its yield to maturity.
c. All else equal, bonds with longer maturities have more interest rate (price) risk than do bonds with shorter maturities.
d. All else equal, bonds with larger coupons have greater interest rate (price) risk than do bonds with smaller coupons.
e. If a bond is selling at a premium, its current yield will be greater than its yield to maturity
Apex Roofing's stock has a beta of 1.50, its required return is 14.00%, and the risk-free rate is 5.00%. What is the required rate of return on the stock market?
10.50%
11.00%
11.50%
12.00%
12.50%
thank you!
Tags: