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Determining values - Convertible bond Eastern Clock Company has an outstanding issue of convertible bonds with a $1,500 parivalue, These bonds are corvertble into 35

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Determining values - Convertible bond Eastern Clock Company has an outstanding issue of convertible bonds with a $1,500 parivalue, These bonds are corvertble into 35 shares of corrmon. stock. They have a 11% annual coupon interest rate and a 19 -year maturity. The inlerest rate on a straight bond of similar risk is currently 12%. a. Calculate the straigh bond valuo of the bond. b. Calculate the conversion (or stock) value of the bond when the market price of the comenon stock is $20 per share. e. What is the least you would expect the bond to sell for, regardless of the common stock price bohavior? a. The straight value of the bond is 1 (Round to the nearest cent.). b. The conversion (or stock) value of the bond whon the market price of the common stock is 320 per share is 3 (Round to the neacost dollar.) c. The heast you would expect the bond to sell for, regardess of the common stock price behavior is $ (Round to the nearest cent)

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