Maple Aircraft has issued a convertible subordinated debenture at 4.75% interest due 2020. The conversion price is $65.00 and the debenture is callable at 102.75% of face value. The market price of the convertible is 89.00% of face value, and the price of the common is $59.50. Assume that the value of the bond in the absence of a conversion feature is about 63.00% of face value. Assume a face value of $1,000.

1. What is the conversion value as a percent of face value? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.)

Conversion value %

2. At what stock price is the conversion value equal to the bond value? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Stock price $

3. How much is the convertible holder paying for the option to buy one share of common stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Option value $