1. Simple Interest Yield. A $30,000, 15 percent, 10-year bond is bought at 102. What is the simple interest yield? 2. Market Price of Stock. For a $1,000 convertible bond, the conversion price is $50....

1. Simple Interest Yield. A $30,000, 15 percent, 10-year bond is bought at 102. What is the simple interest yield?

2. Market Price of Stock. For a $1,000 convertible bond, the conversion price is $50. The call price is $1,200. (a) If the conversion value of the bond equals the call price, what should the market price of the stock be? (b) What is the approximate market price of common stock if the conversion value of the bond is 20 percent higher than the call price?