Question 1 You have been hired to value a new 20-year callable, convertible bond. The bond has a coupon rate of 5.4 percent, payable semiannually, and its face value is $1,000. The conversion price is $56, and the stock currently sells for $43. a. What is the minimum value of the bond? Comparable nonconvertible bonds are priced to yield 6 percent. (6) b. What is the conversion premium for this bond? (4)