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6. You are interested in investing in some corporate bonds from companies that have been severely hurt by the Covid virus. You do some research and find there are five companies whose bonds are currently yielding around 20%. Each of the bonds is described in the table below. Answer the questions that follow. You may use Excel if you wish, although with some time on a calculator you can answer each of the questions. If you do use Excel I still want to see your work: formulas used, sub-amounts calculated, etc. Coupon $ Bond 1 Bond 2 Bond 3 Bond 4 Bonds YIM 20% 18% 28% 10% 12% 12% 10% Maturity Date 2025 2025 2025 2025 2025 Face Amount 10,000 20,000 5,000 10,000 10,000 20% $ $ 22% What is the price of each bond? What is your total investment amount? b. What is the par value of each bond? Assume you purchase one of each bond. L What is the YTM of your portfolio? Assume that one week after you purchase the bonds, the company that issued Bond 5 defaults and never pays you one cent of principal or interest. Assume further that all the other bonds pay interest (annually) and principal according to the terms. What would your YTM turn out to be? d. What would your YTM have been if you invested in Bond 3 ONLY? le. What would your YTM have been if you invested in Bond 1 ONLY? Using your answers to d. and e. and any other concepts we've covered in class, describe the difference and expected outcomes of following each of these strategies: Buying one of the bonds in enough quantity to approximate your total Investment from a. above, or . Buying one of each bond. Page of 2 0 - 2 1. List 10 of the stocks that are included in the Dow Jones Industrial Average (the index contains more than 10 stocks). Include the name and "ticker" symbol for each. Include the link to the source you used. 2. Find the beta for each of the ten stocks named above. For each stock, list the beta; the basis of the beta calculation (I'm not asking you to calculate betas, but your source will likely tell you something about how the beta was calculated - that's what I'm after) and your source. 3. For one stock in your list, find two sources for the beta of that stock. List the betas you found and the sources used. 4. Assume your goal is to create a portfolio whose beta is 1.0. Using only the ten stocks you identified above, create a portfolio whose beta is as close to 1.0 as you are able. Here are the constraints on your portfolio: a. The total invested amount is $100,000 b. No single stock investment can exceed $20,000 c. No single stock investment can be less than $5,000 d. You must invest in a minimum of 8 stocks Your answer should show 1) each stock, 2) the amount of the investment in that stock, 3) the overall beta for your portfolio, and 3) how you calculated that beta. 5. Assume you have a friend who told you she had created the portfolio you created in #4, with all of the exact attributes of the portfolio you created (stocks, investment amounts, etc.). If she

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