A 10.25%, 14-year convertible bond has a conversion rate of 19 and is selling at a quote of 98.40. The common stock is selling at $35 and comparable non-convertible bonds are yielding 13%. The common stock pays an annual dividend of $1.50 per share.

A. Calculate the conversion value of the bond

B. Calculate the conversion premium (if any)

C. Calculate the investment value of the bond

D. Calculate the investment premium (if any)

E. Calculate the payback period