Issuer: Snap Issue Date: 1 August 2019 Maturity Date: 1 August 2026 Interest: 0.75% payable semi-annually on 1Feb and 1 August Issue Size: $1,000,000,000 Par Value: $1,000 Conversion Ratio: 43.8481 (based on $1,000 par value) Convertible Bond Price on beginning of day, 1 August 2019: 108.76 (\% of par) Share Price on 1 August 2019, market open: 16.29 9. a. What is the initial conversion price? b. Suppose that on August 1, 2021, Snap's share price is $10. Is the option to convert in the money? What is the lowest possible value of the convertible bond? Suppose the yield for identical non-convertible bonds is 2%. Explain your answer. c. Suppose that on August 1, 2021, Snap's share price is $40. Is the option to convert in the money? What is the lowest possible value of the convertible bond? Suppose the yield for identical non-convertible bonds is 2%. Explain your answer. d. How one can make arbitrage profit given the share price is $40 and convertible's price is 108.76 (\% of par)