1. A bond with a coupon rate of 6.5%, maturing in 10 years at a value of $1,000 and a current market price of $950, will have a yield to maturity (using the approximation formula) of
A. between 6% and 6.5%
B. between 6.5% and 7%
C. between 7% and 7.5%
D. between 7.5% and 8%
2. A convertible bond is currently selling for $1,125. It is convertible into 20 shares of common which presently sell for $40 per share. The conversion premium is
A. $325
B. $215
C. 66.74 shares
D. 23.8 shares