1. A 9.35%, 18-year convertible bond is selling at $1,095. The bond has a conversion rate of 38. The common stock is trading at 23.12. Comparable straight bonds are selling to yield 9 %. The common stock pays an annual dividend of .50 cents per share.
2. 1. Calculate the bonds conversion value
   2. Premium (if any) over conversion value
   3. Investment value
   4. And premium (if any) over investment value, and payback period.