1. you bought 100 shares of IBM stock last year for $75, you received a $5per share divided during the year and the current price of the stock is $95. what is the dividend yield on your investment?

2. you own a $1000 face value convertible microsoft bond that is currently trading at a price of $1,100. the bond has a conversion ratio of 20 and microsoft stock is currently trading at $60 per share. assuming you are liquidating your position, which option would be more profitable?

3. the yield on UST reasury notes are as follows:

Date 1yr-1.40

2yr: -1.22

3yr: -1.16

4yr: 1.18

5yr: 1.28

what is the 1 year rate in year 2?