Stephanie Poden is evaluating her investment alternatives in Sands Incorporated by analyzing a Sands convertible bond and Sands common equity. Characteristics of the two securities are as follows:

$\backslash$table$[[,$Convertible Bond,Common Equity$],[$Par value,$$1,000,],[$Coupon $($annual payment$),6\%,],[$Current market price,$$960,$$$42$ per share$],[$Straight bond value,$$940,],[$Conversion ratio,$25,],[$Conversion option,At any time,$$0$