Q2. Mr. James has purchased convertible bonds outstanding with the par value of $1000. 10%. The maturity date of the bond is 25 years. At the time of purchase of bond, market price of the common stock prices was $22 per share. They set conversion price of $30 per share and offered $80 conversion premium to investor. After two years from the purchase of bond investor sold this bond, when stock prices fluctuate from $25 to $28 per share. It offered the premium of $20 to investor. 1) What would be the bond market price and conversion value at the time of purchase? (2 Marks) 2) What would be the bond market price and conversion value at the time of sale? ( 2 Marks) 3) What would be the Gain, rate of return for the investor on sale of this security. ( 1 Mark)