1. A stock's beta value is a measure of
a.systematic risk.
b.diversifiable risk.
c. total risk.
d. unsystematic risk.
2. Watch-over-ya Securities has issued $1,000 par value bonds with 21 years maturity. The bonds pay 7.75% interest on a semi-annual basis. The current market price of the bonds is $1,350. What is the yield-to-maturity of these bonds?
a. 5.03%
b. 7.21%
c. 8.26%
d. 2.52%