Information on Convertible Bond of the Company: Coupon Rate = 10% Semiannual Coupon Payments Time to Maturity = 10 Years Market Value today = $950 Information on Common Stock of the Company: Market price = $17/share Dividend = $1/share Assignment Calculate the 1-year return to a. an investor who purchases the shares of the company today and b. an investor who purchases the convertible bond of the company today Under the following conditions: 1. Straight bond value of convertible bonds at t=1 is $798.82 2. Stock Price at t=1 Case #1 - Stock price = $34/share Case #2 - Stock price = $7/share