A certain 7% annual coupon rate convertible bond(maturing in 20years) is convertible at theholder's option into 23 shares of common stock. The bond is currently trading at $820. The stock(which pays 71 a share in annualdividends) is currently priced in the market at $34.74 a share.

a. What is thebond's conversionprice?

b. What is its conversionratio?

c. What is the conversion value of thisissue? What is its conversionparity?

d. What is the conversionpremium, in dollars and as apercentage?

e. What is thebond's paybackperiod?

f. If comparablyrated, nonconvertible bonds sell to yield 9 %, what is the investment value of theconvertible?

a. Thebond's conversion price is $____. (Round to the nearestcent.)

b. The conversion ratio is ___ shares.(Round to the nearestinteger.)

c. The conversion value of this issue is $___ (Round to the nearestcent.)

The conversion parity of this issue is $___. (Round to the nearestcent.)

d. The conversion premium in dollars is $ ___. (Round to the nearestcent.)

The conversion premium as a percentage is ___%. (Round to two decimalplaces.)

e. Thebond's payback period is ___ years.(Round to one decimalplace.)

f. The investment value of the convertible is $___. (Round to the nearestcent.)