A convertible bond is issued with a face value of $10,000. It has a quarterly coupon rate of 4% and the time to maturity is 20 years. The conversion factor is 1 to 200. The current stock price for the company is $35. a) Assuming a discount rate of 9%, what is the convertibles pure bond value? b) How much should the stock price be to make the bond worth converting today? Should an investor convert the bond today? c) If we predict that the stock price will rise to $70 in three years, should we purchase the convertible today, or should we spend the money on stock? d) If the company wishes to force conversion of those bonds into stock once the stock price hits $40, what should the new conversion factor be?