A convertible bond has the following features (rounding allowed in answers):

Face Value: $1,000 Maturity: 10 years Annual coupon: $80 Call Price: $1,100 Conversion Price: $50

I. The bond may be converted into how many shares? II. What is the current value of the convertible as a bond if prevailing interest rates are 9%? III. What is the current value of the convertible as a stock if the current stock price is $45 per share? IV. Based on (II) and (III) and assuming a market premium of $50, what should the current price of the bond be? V. Above, in question IV, if the prevailing interest declines to 7% and all else stays the same, should you sell the bond or hold it? Justify your answer.