Your firm has a convertible bond with 5 years to maturity and a $1000 face value.The annual coupon rate is 3%.Similar nonconvertible bonds are priced to yield 8%.The current price of the convertible bond is 10% more than the price of the nonconvertible bond.Each bond can be converted into 20 shares of stock. If current stock price is 10.34, find the bond's option premium.Will the bond holder convert the bond? Explain.