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3. Consider a $1,000-par value zero-coupon bond maturing in two years, currently priced for $811.62. What is the yield to maturity? A) 10% B) 11%

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3. Consider a $1,000-par value zero-coupon bond maturing in two years, currently priced for $811.62. What is the yield to maturity? A) 10% B) 11% C) 12% D) 13% E) None of the options are correct 2. A 10% coupon bond, face value of $1,000, with annual payments and 10 years to maturity is callable in three years at a call price of par value + 1 year of coupon (.e., $1,100). If the bond is selling today for $975, the yield to call is A) 10.00% B) 10.26% C 10.41% D) 11.02% E) 13.98% A convertible bond has a par value of $1,000 and a current market price of $975. The current price of the issuing firm's stock is $42, and the conversion ratio is 22 shares. The bond's market conversion value is A) $51 B) $870 C) $924 D) $975 E) $1,000

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