1.

Eduardo purchased 12,000 shares of Acme Anvil Corp. at $6.55 per share using 30%

margin. The share price dropped to $5.10 per share and Eduardo received a margin

call. How much cash must Eduardo deposit to return his margin to 30%?

A) $10,500

B) $8,700

C) $12,180

D) $17,400

2.

A SNC Lavalin callable bond has the following: Maturity = 6 years; Time to First Call

= 2 years; Par Value = $1,000; First Call Price = $1,045; Coupon = 4.50% (semi-

annual); Current Market Price = $1,081.56. What is the yield to first call?

A) 2.52%

B) 2.19%

C)$250%

D) 3.00%