1. A pure discount, $1,000 bond will mature in 4 years. If its present market price is $735, its yield-to-maturity is:
(a) 7.5%. (b) 8.7%. (c) 7.0%. (d) 8.0%. (e) 10.0%.
2. The SML must go through the market portfolio point since its Beta is
(a) 1. (b) 0.5. (c) 0. (d) -1. (e) 2.