1. Systematic risk is measured by (choose only one best option): variance covariance correlation coefficient standard deviation beta
2. ABC's bond currently sell for $1200. The par value is $1,000. The coupon rate is 15%, paid semi-annually. If the bonds have 10 years to maturity, what is the yield to maturity?
3. ABC Company is issuing a new bond with a par value of $1,000 and a coupon rate of 7%. The time to maturity is 11 years and the Yield to Maturity is 4%. If coupon payments are semi-annual, what is today's price of this bond?