Question 7 (2 marks) Albany Corporation has a convertible bond with face value of $1,000, coupon rate of 6.5%, and with annual payments for 6 years. The bond can be converted into 20 shares of common equity (currently trading at $46 per share). What will be the best option for the investor - to convert the bonds or to sell them? The required rate of return on this bond is 8%. Question 8 (1 marks) Suppose that you purchase a 91-day Treasury bill for $9,850 that is worth $10,000 when it matures. Calculate the annualized return on this security assuming it is held until maturity. Question 9 (2 marks) A $1,000 par bond with an annual coupon has only one year until maturity. Its current yield is 6.5% and its yield to maturity is 10%. What is the price of the bond? Question 10 (1 marks) Suppose you want to buy a stock, which will pay $1.5 dividend in next year, price of this stock will be $52 in next year. How much are you willing to pay for this stock today if your required rate for investment is 11%