Question 1 (1 point) 1. Bookstaber Corp. has bonds outstanding that are convertible to common shares. The bonds are 15 years to maturity, carry a 6% coupon, can be converted into 50 shares. The stock is currently selling for $17.50 per share. The bond is selling for $925. Non-convertible bonds of the otherwise same risk are yielding 7.25%. What is the conversion value of the bond? $885.32 925 $875 $862.47 $922.50 Question 2 (1 point) 1. Bookstaber Corp. has bonds outstanding that are convertible to common shares. The bonds are 15 years to maturity, carry a 6% coupon, can be converted into 50 shares. The stock is currently selling for $17.50 per share. The bond is selling for $925. Non-convertible bonds of the otherwise same risk are yielding 7.25%. What is the straight bond value? $825 $886.83 $969.10 $925 $861.06 Question 3 (1 point) 1. Bookstaber Corp. has bonds outstanding that are convertible to common shares. The bonds are 15 years to maturity, carry a 6% coupon, can be converted into 50 shares. The stock is currently selling for $17.50 per share. The bond is selling for $925. Non-convertible bonds of the otherwise same risk are yielding 7.25%. What is the option value of the bond? $63.94 $100 O-$44.10 $0.00 $38.17 Question 4 (1 point) 1. Bookstaber Corp. has bonds outstanding that are convertible to common shares. The bonds are 15 years to maturity, carry a 6% coupon, can be converted into 50 shares. The stock is currently selling for $17.50 per share. The bond is selling for $925. Non-convertible bonds of the otherwise same risk are yielding 7.25%. If the call price is $1060 and the expected growth rate is 3.5% when might the bond be called? 5.5 years 3.93 years Never O 7.85 years 11 years