Maple Aircraft has issued a convertible bond at 4.75% interest due 2030. The market price of the convertible is 91% of face value (face value is $1,000), and the conversion ratio is 20. Assume that the value of the bond in the absence of a conversion feature is about 80% of face value.

1) What is the conversion price?

2) How much is the convertible holder paying for the option to buy one share of common stock?