In-Class Chapter 19 Saved 2 Vernon Glass Company has $20 million in 10 percent convertible bonds outstanding. The conversion ratio is 40, the share price is $22, and the bond matures in 15 years. The bonds are currently selling at a conversion premium of $55 over their conversion value. If the price of the common shares rises to $28 on this date next year, what would your rate of return be if you bought a convertible bond today and sold it in one year? Assume that in one year the conversion premium has shrunk from $55 to $20. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) 10 points Rate of return eBook Print References In-Class Chapter 19 ( Saved 5 The Manning Investment Company bought 80 Cable Corp. warrants one year ago and would like to exercise them today. The warrants were purchased for $31 each, and they expire when trading ends today (assume there is no speculative premium left). Cable Corp. common stock is selling today for $60 per share. The option price is $37, and each warrant entitles the holder to purchase two shares of stock, each at the option price. 10 points a. If the warrants are exercised today, what would the Manning Investment Company's dollar profit or loss be? (Input the answer as positive value.) (Click to select) $ eBook b. What is the Manning Investment Company's percentage rate of return? (Round the final answer to 2 decimal places.) Print Rate of return References