1. Portfolio Return At the beginning of the month, you owned $11,200 of Company G, $11,000 of Company S, and $17,000 of Company N. The monthly returns for Company G, Company S, and Company N were 10.2 percent, -1.35 percent, and 9.3 percent. What is your portfolio return? (Round intermediate calculations to 2 decimal places.)

6.98%

18.25%

6.62%

6.08%

2. A company is planning to issue a bond to finance a project with debt. If the yield to maturity of the bond is 11.90%, find the effective cost of debt (effective annual yield (EAY)) for the bond?

A) 12.25%

B) 12.20%

C) 12.07%

D) 14.30%

E) 13.12%