1. Is there any reason to anticipate that the firm will call the bond?

   The price of the stock is -Select-higher than-less than equal to- the bond's exercise price. So the firm -Select-could-could not force conversion by calling the bond.

2. What do investors receive if they do not convert the bond when it is called? Round your answer to the nearest dollar.

   $

3. If the bond were called, would it be advantageous to convert?

   It -Select-isis not- advantageous to convert since the bond's value as stock is -Select-higher than-less than-equal to the call price.

Given the following information concerning a convertible bond: Coupon: 7 percent ($70 per $1,000 bond) Exercise price: $24 Maturity date: 15 years Call price: $1,030 Price of the common stock: $30 Given the following information concerning a convertible bond: Coupon: 7 percent ($70 per $1,000 bond) Exercise price: $24 Maturity date: 15 years Call price: $1,030 Price of the common stock: $30