Fortune Inc. has a pure discount bond issue with a face value of $1,000 that matures in 1 year. The assets of the firm are currently valued at $1,200, but it is expected to either drop to $1,300 or rise to $1,500 in a year's time. If the risk-free rate is 6%, what is the value of the equity? $292.45 O $256.60 $315.85 $285.12 O $907.55 A company has a convertible bond outstanding with a conversion price of $50 and maturity in 10 years. The company's share price is $24.25. This convertible bond is comparable to a 10-year coupon bond traded in the market with face value of $1,000, annual coupon rate of 9%, and required return of 12%. What is the floor value of this convertible bond? $485 $928.34 $24.25 O $2,575 $830.49