Defense Systems Inc. has convertible bonds outstanding that are callable at $1055 The bonds are converts into 25 shares of common stock The stock is currently selling for $62.20 per share a. If the firm announces it is going to call the bonds at $1.055. what action are bondholders likely to take O Bondholders will most likely convert their bonds to shares of common stock Bondholders will most likely allow these bonds to be called b. Assume that instead of the call feature, the firm has the right to drop the conversion ratio from 25 down to 22.00 after 5 years and down to 20.00 after 10 years. If the bonds have been outstanding for four years and 11.00 months, what will the price of the bonds be if the stock price is $63 80? Assume the bonds carry no conversion premium (Do not round intermediate calculations and round your answer to 2 decimal places.) Dond once c. Further assume that you anticipate that the common stock price will be up to $59.60 in two months considering the conversion