1. What are the pros and cons of convertible bonds to a bond investor? Under what conditions would you favor buying convertibles over straight bonds? Why might you favor buying straight bonds over convertibles?
2. Explain the three different types of exchange rates. Finds the three exchange rates for a currency of your choice and explain the values you find.
3. Monty purchased a new motorcycle for $28,000 and has a monthly payment of $522.00 over 60 months. Calculate the nominal interest rate for this transaction.