1. Big Bud In's convertible bond with a conversion ratio of 100 is quoted at 109.5 (par value = $1,000). If the conversion premium is $440 what is the current price of the underlying stock? A) $4.40 B) $10.95 C) $6.55 D) $9.50

2. A Government of Canada zero coupon bond has the following: Maturity = 6 years, Par value = $10,000; Current market price = $8,975.55. What is its yield to maturity? (Assume annual compounding periodicity). A) 2.11% B) 1.91% (C) 2.01% (D) 1.82%

3. Komal sold short 4,000 shares of Pure Water Inc. at $25.50 per share. 96 days later she closed out her position in Pure Water Inc. at $19.10 per share. What was the result of Komal's two trades? 0 A) A profit of $3.20 per share for a total profit of $12,800. B) A loss of $6.40 per share for a total loss of $25,600. O C) A loss of $3.20 per share for a total loss of $12,800. O D) A profit of $6.40 per share for a total profit of $25,600.