(b) Serina has been hired as financial analyst and assign to evaluate a new 20-year callable convertible bond. The information of the bond are as follows:

• 6.8 percent coupon rate, payable annually.
• The conversion price is RM160.
• The share currently sells for RM42.20
• The share price expected to grow at 12 percent.
• The bond is callable at RM2,150, but based on an experience before, it wont be called unless the conversion value is RM2,250.
• The required return on this bond is 10 percent.

Calculate the value to this bond. (7 marks)