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StormTech has $1,000 convertible bonds with a coupon rate of 10% paid annually, that has 10 years to maturity. The bond is convertible into 30

StormTech has $1,000 convertible bonds with a coupon rate of 10% paid annually, that has 10 years to maturity. The bond is convertible into 30 shares of StormTech. The current interest rate on similar bonds without the convertible option is 7.6%. The current stock price of StormTech is $45. a. What is the bonds straight-debt value?

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