Armand Gillette, a convertible bond analyst, stops by Bianchis office to discuss two convertible bonds. One is issued by DeLille Enterprises (DE) and the other is issued by Raffarin Incorporated (RI). Selected data for the two bonds are presented in Exhibits 3 and 4. Exhibit 3 Selected Data for DE Convertible Bond Issue price 1,000 at par Conversion period 13 September 20X5 to 12 September 20X8 Initial conversion price 10.00 per share Threshold dividend 0.50 per share Change of control conversion price 8.00 per share Common stock share price on issue date 8.70 Share price on 17 September 20X5 9.10 Convertible bond price on 17 September 20X5 1,123 Exhibit 4 Selected Data for RI Convertible Bond Straight bond value 978 Value of embedded issuer call option 43 Value of embedded investor put option 26 Value of embedded call option on issuers stock 147 Conversion price 12.50 Current common stock share price 11.75