2. (15) Convertible Inc. is traded for $15 a share. The firm wants to issue convertible bonds with a face value of $1,000 and a coupon rate of 6% (paid annually). The bond is convertible into 50 shares. a) (5) What is the conversion price? b) (5) What is the conversion premium? c) (5) Assume that the convertible bond is priced at $1,000. If a similar bond had been sold without the conversion option, would the selling price be above or below $1,000? Explain