25. (Appendix Question) Wheeling Corp. has a 10% subordinated convertible debenture outstanding, maturing in eight years. The

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25. (Appendix Question) Wheeling Corp. has a 10% subordinated convertible debenture outstanding, maturing in eight years. The bond's face value is $1,000.

It currently sells for 99 of par. The bond is convertible into 15 shares ofcommon stock. The company's common stock currently sells for $50 per share. Nonconvertible bonds of similar risk have a yield of 12%.

a. What is the bond's conversion value?

b. What is the bond's conversion premium?

c. What is the bond's investment value?

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