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2. Given the following information concerning a convertible bond: Coupon: 6 percent ($60 per $1,000 bond) Exercise price: $25 Maturity date: 20 years Call price:

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2. Given the following information concerning a convertible bond: Coupon: 6 percent ($60 per $1,000 bond) Exercise price: $25 Maturity date: 20 years Call price: $1,040 Price of the common stock: $30 nd were nonconvertible, what would be its approximate value if comparable interest rates were 9 percent? b. How many shares can the bond be converted into? c. What is the value of the bond in terms of stock? d. What is the current minimum price that the bond will com e. Is there any reason to anticipate that the firm will call the bond? 1. What do investors receive if they do not convert the bond when it is called? g. If the bond were called, would it be advantageous to convert

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