1. A share of preferred with a $100 par value which pays a 12% dividend should have a current price of _____ when the dividend yield is 10%?A. $100B. $12;C. $83;D. $1202. Convertible bonds can generally be converted intoA. share of the issuing companys common stock.;B. parcels of mortgage pass-through certificates.C. additional shares of debenture bonds.D. shares of the issuing companys preferred stock.;3. A convertible bond has a par value of $1000 and a conversion price of $74. How many shares can the bondholder receive in exchange for the bond?A. 11.2 shares;B. 9.8 shares;C. 13.5 shares.D. 7.4 shares;4. Which of the following statements about conversion premiums is (are) correct?1. Conversion premiums often amount to as much as 25 to 30% or more of an issues true conversion value.2. Conversion premiums tend to fade away as the price of the convertible goes up.A. 1 only;B. 2 only;C. Both 1 and 2;D. Neither 1 or 2.

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