BrightFuture has previously issued some Convertible Unsecured Loan Stock. Its Convertible Unsecured Loan Stock is currently trading at 20% below par and under the terms of this security, holders will be able to convert 25 nominal into 5 ordinary shares in a years time. The last disclosed annual dividend to its ordinary shareholders was 18p per share and the current dividend yield is 4.8%. a) Calculate the conversion premium. [4 marks] b) Explain why the issue price of a Convertible Unsecured Loan Stock should be higher than that of the Unsecured Loan Stock which underlies it. [1 mark] c) Convertible Unsecured Loan Stock are sometimes issued to help raise capital for start-ups. Explain why potential investors in such companies may prefer such financial instruments.