21. Convertible bonds (S25.2) Zenco Inc. is financed by 3 million shares of common stock and by $5 million face value of 8% convertible debt maturing in 2029. Each bond has a face value of $1,000 and a conversion ratio of 200. What is the value of each convertible bond at maturity if Zenco’s net assets are worth:

a. $30 million?

b. $4 million?

c. $20 million?

d. $5 million?

Draw a figure similar to Figure 25.3c showing how the value of each convertible bond at maturity varies with the value of Zenco’s net assets.