Plunkett Gym Equipment Inc. has a $1,000 par value convertible bond outstanding that can be converted into 30 shares of common stock. The common stock is currently selling for $27.70 a share, and the convertible bond is selling for $857.90.

a. What is the conversion value of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places.)

b. What is the conversion premium? (Do not round intermediate calculations and round your answer to 2 decimal places.)