A convertible bond is selling for $1,300. It has 10 years till maturity, face value of $1000, coupon rate of 10 percent, and annual interest payments. Similar non-convertible bonds are priced to yield 8 percent. The conversion ratio is 40. The stock currently sells for $30.13 a share. What is the proper discount rate when calculating the value of the straight bond component of the convertible bond