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Question: 1. Twelve months ago, you purchased 10-year Treasury notes with a face value of $1,000. The interest rate is 2.90 percent. What is the dollar amount of interest you will receive each year?

2. Assume that you purchased a $1,000 convertible corporate bond. Also assume the bond can be converted to 38.4615 shares of the firm's stock. What is the dollar value that the stock must reach before investors would consider converting to common stock?

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