Search Done 2:00 Homework #11 4 2.5 points eBook Hint Print References Mc Graw Hill < ezto.mheducation.com Saved ave & Exit Conversion price < Prev AA C Assume that you purchased a $1,000 convertible corporate bond. Also assume the bond can be converted to 23.8095 shares of the firm's stock. What is the dollar value that the stock must reach before investors would consider converting to common stock? (Round your answer to the nearest whole dollar amount.) 4 of 8 Submit Check my work Next > Search Done 2:00 Homework #11 2 2.5 points eBook Hint Print References Mc Graw Hill < ezto.mheducation.com Saved Taxable equivalent yield < Prev ave & Exit 2 of 8 Assume you are in the 33 percent tax bracket and purchase a municipal bond with a yield of 5.75 percent. Use the formula presented in this chapter to calculate the taxable equivalent yield for this investment. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) AA C III Submit Check my work Next > % Done Homework #11 LO 5 2.5 points eBook Print References Mc Graw Hill < ezto.mheducation.com Saved ave & Exit Approximate market value < Prev AA C Five years ago, you purchased a $1,000 par value corporate bond with an interest rate of 7 percent. Today, comparable bonds are paying 8 percent. Submit What is the approximate dollar price for which you could sell your bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 5 of 8 Check my work Next > Done Homework #11 7 2.5 points eBook Print References Mc Graw Hill < ezto.mheducation.com Current yield Saved ave & Exit < Prev Determine the current yield on a corporate bond investment that has a face value of $1,000, pays 5 percent, and has a current price of $820. (Enter your answer as a percent rounded to 2 decimal places.) 7 of 8 AA C Submit Check my work % Next > Done Homework #11 8 2.5 points eBook Print References Mc Graw Hill < ezto.mheducation.com Current yield Saved ave & Exit < Prev Assume you own a corporate bond that has a face value of $1,000 and pays 4.8 percent. What is the current yield if the bond is currently selling for $1,600? 8 of 8 III AA C Submit Check my work % Next > Search Done 2:00 Homework #11 1 2.5 points eBook Hint Print References Mc Graw Hill < ezto.mheducation.com Saved ave & Exit Minimum emergency fund Prev Jane and Bill Collins have total take-home pay of $9,500 a month. Their monthly expenses total $7,900. Calculate the minimum amount this couple needs to establish an emergency fund. 1 of 8 AA C Submit Check my work Next > Search Done 2:00 Homework #11 3 2.5 points eBook Hint Print References Mc Graw Hill < ezto.mheducation.com Saved < Prev ave & Exit Amount of annual interest 3 of 8 AA Three years ago, you purchased a corporate bond that pays 5.5 percent. The purchase price was $1,000. What is the annual dollar amount of interest that you receive from your bond investment? Submit Check my work Next > Done Homework #11 6 2.5 points eBook Print References Mc Graw Hill < ezto.mheducation.com Saved ave & Exit Approximate market value < Prev AA C In 2009, you purchased a $1,000 par value corporate bond with an interest rate of 6.75 percent. Today, comparable bonds are paying 6.50 percent. Submit What is the approximate dollar price for which you could sell your bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 6 of 8 Check my work Next >