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callable bonds Given an 8% annual coupon and a conversion price of $100the stock sells at $25, and there is a forced conversion if the

callable bonds

Given an 8% annual coupon and a conversion price of $100the stock sells at $25, and there is a forced conversion if the value is everequal or greater than $1200,the required rate of return is 12% and the bond runs 20 years

a) Calculate the minimum price of the bond

b) If the stock grows 15% per year into perpetuity How long will it take to reach/exceed the $1200 threshold

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