Determining values - convertible bond. Craig's Cake Company has an outstanding issue of 9-year convertible bonds with a $800 par value. These bonds are convertible into 85 shares of common stock. They have a 14% annual coupon interest rate, whereas the interest rate on straight bonds of similar risk is 15%.

a) Calculate the straight bond value of this bond.

b) Calculate the conversion (or stock) value of the bond when the market price is $88 per share of common stock.

c) What is the minimum market value of the bond?