A company's $$1000$ par, $8\%$ coupon convertible bond has a $16-$year

maturity, a call penalty of one year's interest, and conversion ratio of $30.$

The company's common stock is currently selling for $$36\mathrm{.}00.$

a$.$ If this bond was nonconvertible and market interest rates are $10\%,$

what would the bond's value be$?$

b$.$ What is the conversion price?

c$.$ What is the value of the bond in terms of stock?

d$.$ What is the current minimum price of the bond?

e$.$ If the current market price of the bond is $$920,$ what should you do$?$

f$.$ What is the likelihood the firm will call the bond?

g$.$ If the bond is called and the investors do not convert it$,$ how much will

the investors receive?

h$.$ If the bond is called, should the investor convert the bond?

i$.$ If interest rates rise, how would that affect the bond's current yield?

j$.$ If the stock price were $$18,$ how would that affect your answer to part

$($i$)?$