The firm you are analyzing has $$90$ million in face value of convertible debt with a

stated interest rate of $7\%,$ a $10-$year maturity and a market value of $$110$ million. If

the firm has a bond rating of A and the interest rate on A$-$rated straight bond is $8\%,$

how much should you adjust Debt by$?$ Equity?

$83\mathrm{.}96$ Debt $/26\mathrm{.}04$ Equity

$82\mathrm{.}20$ Equity $/32\mathrm{.}40$Debt

$81\mathrm{.}96$ Debt $/27\mathrm{.}04$ Equity

$87\mathrm{.}86$ Debt $/29\mathrm{.}08$ Equity