.1- You have been hired to value a new 30-year convertible bond. The bond has a coupon rate of 3.2 percent, pay- able semiannually, and its face value is $1,000. The conversion price is $58, and the stock currently sells for $39. a. What is the minimum value of the bond? Comparable nonconvertible bonds are priced to yield 4.9 percent.

Straight bond value = $16(PVIFA_2.45%,60) + $1,000 / 1.0245⁶⁰

^{What does the PVIFA mean and how to get} $734.26