QUESTION 13 Stephen Inc. has issued zero coupon bonds which mature in 5 years. The bonds have a $1,000 par value. The required return on bond is 5%. What is the market price of the bonds? O A. $783.53 O B. $500 O C. $649.93 OD. $1000 QUESTION 14 Toys, Inc. is a toy store which has issued convertible bonds. The bonds have a face value of $1,000 and are convertible at $35.00 per share. Current price of the bond is $945 and pays coupon at a rate of 6%. The current stock price is $40.00. What is the conversion ratio and conversion value for the bond? O A. Conversion ratio = 25, Conversion Value = 1000 O B. Conversion ratio = 28.57, Conversion Value = 1142.8 O C. Conversion ratio = 28.57, Conversion Value = 1000 O D. Conversion ratio = 25, Conversion Value = 1142.8