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NUMERICAL QUESTION: Suppose that an investor is considering the purchase of a stock or a convertible bond of COMPANY S. The stock of the company can be purchased at C20. The following information is for the convertible bond. The bond has a face value of 1,000 , an annual coupon rate of 4% (coupons are paid every six months) and a maturity of 3 years. Similar bonds are selling to yleld 12% annually. The current market price of the convertible bond is C920. The conversion ratio is 45 . 1. What is the straight value of that bond? (40 marks) 2. What is the minimum value of the convertible bond? (20 marks) 3. Assume that the investor decided to purchase the convertible bond and that 2 months later, the price of the stock fell to cl6. What is the return to the investor from having bought the convertible bond? (40 marks) Remember to input your answer without the \% sign, For instance, an answer equal to 1.52% should be entered as 1.52