A certain 5% annual coupon rate convertible bond (maturing in 20 years) is convertible at the holder's option into 17 shares of common stock. The bond is currently trading at $790. The stock (which pays 56 a share in annual dividends) is currently priced in the market at $33.79 a share.

QUESTIONS: HUGE THUMBS UP FOR CORRECT ANSWERS

a. The bond's conversion price is (blank) $ ? (Round to the nearest cent.)

b. The conversion ratio is (blank) shares ? (Round to the nearest integer.)

c. The conversion value of this issue is (blank) $ ? (Round to the nearest cent.)

The conversion parity of this issue is (blank) $ ? (Round to the nearest cent.)

d.. The conversion premium in dollars is (blank) $ ? (Round to the nearest cent.)

The conversion premium as a percentage is (blank) % ? (Round to two decimal places.)

e. The bond's payback period is (blank) years ? (Round to one decimal place.)

f. . If comparably rated, nonconvertible bonds sell to yield 7 % .what is the investment value of the convertible?

The investment value of the convertible is (blank) $ ? (Round to the nearest cent.)