Consider a convertible bond with maturity of one year that pays a coupon of 2.5% at maturity and has conversion ratio of 2.65 . One year interest rate is 5% and the underlying stock price is $30 with annual volatility of return of 25%. Use a one step binomial model to a- Determine the price of the bond b- For what conversion ratio the bond would be par c- For what coupon the bond would be par