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Caesar, inc. has a convertible bond issue with a 10.15% interest rate, a term of 17 years, and a conversion rate of 13.75. The bond

Caesar, inc. has a convertible bond issue with a 10.15% interest rate, a term of 17 years, and a conversion rate of 13.75. The bond is currently quoted as 107.35. The common stock is currently selling for $74.60.

A. Calculate the conversion value on the bond.

B. Calculate the conversion premium, if any, on the bond.

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