5.Given the following information concerning a convertible bond: Principal $1000 Coupon5% Maturity15 years Call price$1050 Conversion Price$37 (i.e.,27 shares) Market Price of the common stock$32 Market Price of the bond$1040 d)What is the premium in terms of stock that the investor pays when he or she purchases the convertible bond instead of the stock? e)Nonconvertible bonds are selling with a yield to maturity of 7%. If this bond lacked the conversion feature, what would the approximate price of the bond be