1. A Treasury bond with the longest maturity (30 years) has an ask price quoted at 101.9375. The coupon rate is 4.10 percent, paid semiannually. What is the yield to maturity of this bond?
2. If a convertible bond has a face value equal to 2000 and can be converted into 50 shares of common stock. What is the minimum stock price that would make it beneficial for bondholders to convert their bonds?
3. ABC company is looking to raise $50,000,000 to buy new equipment. If floating cost is 10%, what is the amount of issue?