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Standard Olive Company of California has a $ 1 , 0 0 0 par value convertible bond outstanding with a coupon rate of 7 percent

Standard Olive Company of California has a $1,000 par value convertible bond outstanding with a coupon rate of 7 percent and a maturity date of 25 years. It is rated Aa, and competitive, nonconvertible bonds of the same risk class carry a 14 percent yield. The conversion ratio is 30. Currently the common stock is selling for $20 per share on the New York Stock Exchange.
a. What is the conversion price? (Round your answer to 2 decimal places.)
b. What is the conversion value? (Round your answer to 2 decimal places.)
c. Compute the pure bond value. (Use semiannual analysis.) Use Appendix B and Appendix D as an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
d. Calculate the crossover point at which the pure bond value equals conversion value. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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