Hilton Hotels Corp. has a convertible bond issue outstanding. Each bond, with a face value of $1,300, can be converted into common shares at a rate of 61.2996 shares of stock per $1,300 face value bond (the conversion rate), or $21.2073 per share. Hiltons common stock is trading (on the NYSE) at $20.79 per share and the bonds are trading at $1,275. a. Calculate the conversion value of each bond. (Round your answer to 2 decimal places. (e.g., 32.16)) b. State whether it is currently profitable for bond holders to convert their bonds into shares of Hilton Hotels common stock.