Make conversion potentially attractive

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1. You buy a $10,000 par treasury bill at $9,575 and sell it 60 days later for $9,675. What was your EAR?

2. A holder of Rainbow funds convertible bond with a $1,000 par and a $1,100 price can convert to 25 shares of common stock. The stock is currently price at $36 per share. By what percent does the stock price have to rise to make conversion potentially attractive?

Reference no: EM13895448

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