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A certain 7% annual coupon rate convertible bond maturing n 20 years s convertible at the holders option into 23 shares o common stock. The

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A certain 7% annual coupon rate convertible bond maturing n 20 years s convertible at the holders option into 23 shares o common stock. The bond is currently trading at S820. The stock which pays 734 a share in annual dividends) is currently priced in the market at $33.86 a share. a. What is the bond's conversion price? b. What is its conversion ratio? c. What is the conversion value of this issue? What is its conversion parity? d. What is the conversion premium, in dollars and as a percentage? e. What is the bond's payback period? f. If comparably rated, nonconvertible bonds sell to yield 9%, what is the investment value of the convertible? a. The bond's conversion price is s (Round to the nearest cent.) b. The conversion ratio is shares. (Round to the nearest integer.) C. The conversion value of this issue is $LI (Round to the nearest cent) The conversion parity of this issue is Round to the nearest cent.) d. The conversion premium in dollars is s (Round to the nearest cent.) The conversion premium as a percentage is %. (Round to two decimal places.) .The bond's payback period is years. (Round to one decimal place) f.The investment value of the convertible is $1. Round to the nearest cent)

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