Given the following information concerning a convertible bond:

Coupon: 6 percent (60 per 1000 bond)

excercise price: 25

maturity date 20 years

call price of the common stock: 30

a. If this bond were nonconvertible, what would be its approximate value if comparable interest rates were 9 percent?

b. how many shares can the bond be converted into?

c. what is the value of the bond in terms of stock?

d. what is the current minimum price that the bond will command?

e. is there any reason to anticipate that the firm will call the bond?

f. What do investors recieve if they do not convert the bond when it is called?

g. If the bond were called, would it be advantageous to convert?