2.2 Desmond Tutukhile, is evaluating his investment alternatives in Ytel Incorporated by analyzing a Ytel convertible bond and Ytel common equity. The characteristics of the two securities are given in the following Table 2.1: Common Equity Characteristics Par value Coupon (annual payment) Current market price Straight Bond Value Conversion ratio Conversion option Dividend Expected Market Price in 1 Year Convertible Bond E1,000 4% E980 E925 25 At any time E35 per share EO E45 per share E1.125 Required. 2.2.1 Calculate the market conversion price for the Ytel convertible bond. (2 Marks) 2.2.2 Calculate the Expected one-year rate of return for the Ytel convertible bond. (2 Marks)