PAPER Inc. is considering issuing a 25-year, 12% convertible bond. Each bond could be converted into 30 shares of common stock. The conversion price would be set at 26% premium. Currently, PAPER Inc. stock price is equal to $55 per share and it is expected to pay $6 dividends in the coming year. Also, the expected constant growth rate of the stock is 7.5%. 1. What is PAPER Inc's conversion price of its convertible bonds? a $69.30 b. $33.33 O C. $59.13 d. S5830 O e None of the above 2. What is the conversion value at t=5? * a $2,208.07 O b. $2,984.67 O c. $2,368.79 O d $5,240.06 O e. None of the above