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 10 years. It is rated Aa, and competitive, nonconvertible bonds of the same risk class carry a 10 percent yield. The conversion ratio is 20. 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.)