Problem 2: Another corporation's common stock is currently priced at $14, and its 8 percent convertible debentures (issued at par, or $1,000) are priced at $850. Each debenture can be converted into 50 shares of common stock at any time before 2045 (i.e., the maturity of the debentures is 25 years). a. What is the conversion price, Pc, and the conversion value, CVo, of the bond? b. Suppose Reading plans to call the bonds once the conversion value hits $1,150. If the stock follows the constant growth model with a growth rate of 4% when will they be called