Suppose the bond is convertible. That is, at the end of the 3rd year after issuance, the holder of the bond has the right to convert the bond with 1 to 5 ratio toward company MSLM's common stock. Would you possibly convert the bond at the end of 5" year if based on the above information in a) and c}? Why the socalled \"fair value\" of financial asset is represented by the present value of future cash flows of financial asset? 4. Answer the following multiple questions and with "Explanation\". [No credits will be given if no explanation is shown) a) The mutual funds are good for investments because they are: 1} all efficient portfolios 2) safe investments 3) good candidates for risk-return tradeoffs. fl) all government-sponsored 5) none of the above. b) The reason for using discounted cash flows for time value of money is: 1} money earns interests 2) the opportunity costs that include compensations for risk 3) nation rate 4) the market demand and supply for securities 5) none of the above