Show your work, calculations and any formulas used

1.You bought a $1,000 par Southern Company bond on April 1. The bond pays a coupon rate of 4%/year semiannually on December 1 and June 1. How much accrued interest did you pay?

2.UBS manages a well-diversified, speculative grade bond portfolio which is expected to have an annual default rate of 3.8% and loss given default of 60%. What is the portfolio's expected loss over the next 12 months? (Your answer should be a % carried to 2 places.)

3.If the portfolio described in #2 has a contractual coupon rate of 6.1%/year, what is its expected annual yield? (Your answer should be a % carried to 2 places.)

4.You bought a $1,000 par Tupper NY 10-year bond with equal annual amortization.

a.How much principal will you receive each year?

b.If the coupon rate is 3.6%/year, how much interest will you receive in year 1 and year 2?

5.Answer the following questions and label your answers 5a and 5b:

a.A __________ bond provides a valuable option to the issuer of the bond (the borrower).

b.A __________ bond provides a valuable option to the bondholder (the investor).

6.You bought a $1,000 par GM callable bond in January 2020 that is callable in 2025 at par. It has a coupon rate of 3.2%/year. When is GM likely to call the bond?

7.You bought a convertible bond issued by GoTech Corp which has a conversion ratio of 20 common shares for each $1,000 bond.

a.At what stock price per share would you make a profit ("in the money") if you bought the bond at par?

b.What would you expect the bond to sell for in the market if the stock trades at $61 per share?