Hamilton Steel Company has a convertible bond outstanding, trading in the marketplace at $950. The par value is $1,000, the coupon rate is 7 percent, and the bond matures in 25 years. The conversion price is $50, and the companys common stock is selling for $42 per share. Interest is paid semiannually.

a. What is the conversion value? (Omit $ sign in your response.)

Conversion value $

b. If similar bonds, which are not convertible, are currently yielding 10 percent, what is the pure bond value of this convertible bond? (Use semiannual analysis.) Use Appendix B and Appendix D. (Do not round intermediate calculations. Round "PV Factor" to 3 decimal places. Round the final answer to 2 decimal places. Omit $ sign in your response.)

Bond value $

c. What is the conversion premium? (Omit $ sign in your response.)

Conversion premium $