Kensington Inc has a convertible bond outstanding, trading in the marketplace at $950. The par value is $1,000, the coupon rate is 7 percent, and the bond matures in 20 years. The conversion price is $40, and the companys common stock is selling for $35 per share. Interest is paid semiannually.

a. What is the conversion value? (Omit $ sign in your response.)

Conversion value $

b. If similar bonds, which are not convertible, are currently yielding 10 percent, what is the pure bond value of this convertible bond? (Use semiannual analysis.) (Do not round intermediate calculations. Round "PV Factor" to 3 decimal places. Round the final answer to 2 decimal places. Omit $ sign in your response.)

Bond value $

c. What is the conversion premium? (Omit $ sign in your response.)

Conversion premium $