Question 3 [ Convertible debentures] a. Explain features of convertible debentures. ABJ Inc. issued $ 100,000,000 convertibles debentures @ $ 1000 per convertible. Coupon rate 3.5%, maturity 10 years. Current stock price of the company is $ 50. Conversion price is set at $ 60. Dividend $ 0.6 Work out (a) conversion ratio , (b) Conversion value per convertible , (c) Conversion premium and Stock and (d) Break even years ( years by which conversion premium will be recovered by thee investor). Are the convertibles attractive to investors from the angle of BEP ( years)