1. Calculate the price of a $1,000 bond, offering a 8% coupon payment with 30 years left to maturity and a market interest rate of 10%. (Assume interest payments are semiannual.) Is this a discount or premium bond?
2. What is the internal rate of return for the following? project: An initial outlay of $9500 resulting in a single cash inflow of $17366 in 7 years.
The internal rate of return for the project is?
3. No matter how many assets you add to your portfolio, the portfolio ____________ risk is always present.
firm specific
idiosyncratic
unsystematic
systematic