Sterling Silver Co. has 8% convertible bonds outstanding, paying interest semiannually. Each bond has a $1,000 par value and matures in 15 years. The conversion ratio is 50 and the shares are currently trading for $18 each. Required: 1. How many shares of common stock are received on the conversion of each bond? (1 mark) 2. What is the conversion value of one bond? (1 mark) 3. Assuming that an equivalent bond without the conversion feature would yield 10%, what is the pure bond value of one bond? (2 marks) Assuming a conversion premium of $12, what is the market value of each bond? (1 mark) 4