Consider the convertible bond by Miser Electronics: par value = $1,000 coupon rate = 8.5% market price of convertible bond = $900 conversion ratio = 30 estimated straight value of bond = $700 Assume that the price of Miser Electronics common stock is $25 and that the dividend per share is $1 per annum.

Calculate each of the following

Conversion value

Market conversion price

Conversion premium per share

Conversion premium ratio