Part I Lecture 2 Questions: 1. (0.75 pts.) A S100,000 face value T-bill matures in 75 days and has a Bond Equivalent Yield (BEY) of 5.57%. What is the current value (price) of the bond? 2. (I pts) Suppose there are only three stocks in the market and the following information is Shares Outstanding 10 million 30 million 20 million Price per Share $60 $40 $50 Company 2.1 (0.25 pts.) What is the weight of Stock A in the price-weighted index? 2.2 (0.75 pts.) Suppose the current divisor is 2.5. If the next day, stock A undergoes a 2-for-1 stock split, what is the new post-split divisor for the price-weighted index? Lecture 3 Questions: 3. (0.75 pts.) Tori purchased 500 shares of Flagler Enterprises stock at a price of $25 a share. The initial margin was 60% and the maintenance margin is 35%. After the purchase, the stock price drops to $22. What is the margin now (ignore interest)? Will this trigger a margin call? 4, (0.75 pts ) You invested in stock ABC at $50 per share. The purchase was made with 60% margin at 10% annual interest rate on the borrowing. You sold your shares one year later at S60 per share. What is your holding period return? 5" (0.75 pts.) You short sold stock XYZ at $20 per share at an initial margin of 50%; and collected $200,000 sale proceeds. The broker requires maintenance margin of 30%. If the price increases to $25, would it trigger a margin call