The Ford Prefect Company has bonds outstanding with a face value of $1,000 that reach maturity in 15 years.  The bond’s indenture indicates that the stated coupon rate for this bond is 10% and that the coupon payments are to be made semiannually.  Assuming the appropriate YTM on the bond is 6%, then the price that this bond trades for will be closest to:

The Dow Jones Industrial Average and the S&P 500 are ___________ and _____________ , respectively.

The Dow Jones Industrial Average and the NASDAQ are ___________ and _____________ , respectively.

All of the following are characteristics of Money Market instruments except:

The Ford Prefect Company has bonds outstanding with a face value of $1,000 that reach maturity in 15 years.  The bond’s indenture indicates that the stated coupon rate for this bond is 12% and that the coupon payments are to be made semiannually.  Assuming that this bond trades for $625.00, then the YTM for this bond is closest to:

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Which of the following is NOT a situation where a trader is able to identify positive NPV trading opportunities in the securities markets?

You are considering investing in Change Airlines at the current market price of $30.   The company just paid a dividend of $2, and dividends are expected to grow at 5% per year.  You have looked on Yahoo! Finance and found a beta for the company of 1.3.  If you see that Treasuries have a rate of 2.5% and the long-term market risk premium is 7.5%, should you buy Change Airlines today?

The British government has a Consol bond outstanding that pays 100 British Pounds in interest each year forever.   Assuming that the current interest rate in Great Britain is 6% and that you will receive your first interest payment one year from now, then the value of the Consol bond is closest to:

You are considering buying Goggle stock and see the beta is 1.75, the risk-free rate is 3%, and the expected return on the market is 8%.  What is the required return on Goggle?