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Determine the conversion value of the following debenture: -$1,000 par value -Convertible to company stock at a price of $25/share (stock is currently trading at

Determine the conversion value of the following debenture:

-$1,000 par value

-Convertible to company stock at a price of $25/share (stock is currently trading at $22/share in the market)

-8% coupon rate

-Mature in twelve years

-Callable at 110% of par value

-Straight debt of equivalent risk and maturity is yielding 12%

-40% tax bracket

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