1. You bought a $1,000 face value Midwest P&L bond on March 1. The bond pays a coupon rate of 4%/year semiannually on November 1 and May 1. A) Draw a 6-month timeline as we did in the Class Notes. B) How much accrued interest did you pay? 2. Bluerock manages a well-diversified speculative grade bond portfolio which is expected to have an annual default rate of 5.3% and loss given default of 60%. a. What is the portfolio's expected loss over the next 12 months? (Your answer should be a % carried to 2 places.) b. If the speculative portfolio has a weighted average contractual coupon rate of 8.1%/year, what is its expected annual yield? (Your answer should be a % carried to 2 places.) 3. You bought a $1,000 face value Suffolk County, NY 10-year bond with equal annual amortization. a. How much principal will you receive each year? b. If the coupon rate is 4.3%/year, how much interest will you receive in year 1 and year 2? 4. You bought a $1,000 face value Citicorp callable bond in January 2023 that is callable at 101 in 2028 and 2029 and at par after 2029. It has a coupon rate of 5.2%/year. a. Excluding interest, how much would you receive if Citicorp called the bond in 2029? b. In a few words, when is Citicorp likely to call the bond? 5. You bought a convertible bond issued by Zip Corp which has a conversion ratio of 50 common shares for each $1,000 bond. a. At what stock price per share would you make a profit ("in the money") if you bought the bond at par? b. What would you expect the bond to sell for in the market if Zip Corp's stock trades at $28.50 per share?