A certain convertible bond carries a par value of $1,000 and a conversion ratio of 25. If the issue is quoted at 148 while the stock trades at $56, the bond's conversion premium equals a. $93.50. b. $80.00. c. $90.00. d. $65.50. a convertible bond is quoted at 115 and is convertible into 32 shares of common stock, then the underlying stock should be trading at or below its conversion equivalent value of a. $35.94. b. $31.25. c. $32.00. d. $36.80. You have been provided the following information concerning a particular bond; Bond duration in years=20; Bond maturity in years 30; Bond's yield to maturity 9.32 percent; Change in level of market interest rate 0.47 percent; Based on the above information the modified duration for the bond is a. 9.4 years. b. 27.44 years. c. 18.29 years. d. 14.1 years. When the market interest rate is 10 percent, which of the following equally-rated bonds will have the greatest relative price volatility? a. 6 years, 8 percent coupon b. 6 years, 12 percent coupon c. 12 years, 12 percent coupon d. 12 years, 8 percent coupon A 6 percent, 30-year bond with a par value of $1,000 and a current trading price of $1175 has a yield to maturity of a. 4.88 percent. b. 5.5 percent. c. 4.5 percent. d. 5.25 percent. What is the current yield of a $10,000 bond bearing a 14 percent coupon rate and having a current market price of 105? a. 15.4 percent b. 14.0 percent c. 13.3 percent d. 14.7 percent A U.S. Treasury bond is quoted at 98:11. You can buy this bond for a. $980.11. b. $983.44. c. $982.20. d. $981.10. Jennifer is in the 28 percent federal income tax bracket and the 9 percent state income tax bracket. If Jennifer purchases a municipal bond yielding 5.25 percent, what is her after-tax equivalent yield if the bond income is exempt from both federal and state taxes? a. 14.2 percent b. 8.3 percent c. 8.0 percent d. 7.3 percent