A bond with a quarterly coupon rate equal to 12 percent has a yield to maturity of 16 percent. The bond has a face value of $ 1,000 and matures in 20 years. Based on this information, is a fair price of this bond?

Mikkelson corporation's stock had a required return of 12.50% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. then an increase in investor risk aversion caused the market risk premium to rise by 2%. the risk-free rate and the firm's beta remain unchanged. what is the company's new required rate of return? (hint: first calculate the beta, then find the required return.) do not round your intermediate calculations.