Quaid Co.'s common stock sells for $34.00, pays a dividend of $2.30, and has an expected long-term growth rate of 5.8%. The firm's straight-debt bonds yield an 11.20% return. Quaid is planning a convertible bond issue. The bonds will have a 20-year maturity, pay a 10.20% annual coupon, have a par value of $1,000, and a conversion ratio of 25 shares per bond. The bonds will sell for $1,000 and will be callable after 10 years. Assuming that the bonds