(a) Suppose that you are holding SIT Corp. RM10 million convertible bonds with 5 years maturity and 4 percent annual coupon. Given the share price is RM30 during the convertible issuance, conversion premium is 20%, and the share price during maturity is RM50, i) determine the conversion price. [5 marks] ii) evaluate whether you should accept the offer of converting the bonds into common shares. [10 marks] (b) When companies need to raise money to continue or expand their operations, they generally have the option to choose between long-term loans and bonds. [The Motley Fool, 2016) Describe the criteria to be considered between the two alternatives. [10 marks] [Total: 25 marks)