Cheung Zap Inc. just issued 19-year convertible bonds at a par value of $1,000. At any time before maturity, investors have the option to exchange their bonds for shares of Cheungs common stock at a conversion price of $66.24. Cheungs convertible bonds pay a 8.28% annual coupon, but if Cheung had issued straight-debt bonds (no conversion), it would have had to pay 13.80% annual interest. Based on the information available, complete the table: Cheungs common stock currently sells for $37. Would an investor want to convert the bonds now? Yes No Suppose analysts expect Cheung to pay a dividend of $2.00 at the end of the year and for the dividend to grow at a constant rate of 5% per year. What is the expected conversion value five years from now? $1, 069.53 $534.77 $3, 127.85 $713.02