The following data apply to Neuman Corporation's convertible bonds:

Maturity:10 Stock price: $30.00

Par value:$1,000.00

Conversion price:$35.00

Annual coupon: 5.00%

Straight-debt yield:8.00%

1.

What is the bond's conversion ratio?

Conversion ratio = Par value / Conversion Price

1,000 / 35 = 28.57

2.

What is the bond's conversion value?

Conversion value of bond = 28.57 x 30 x 3 = $857.14

3.

What is the bond's straight-debt value?

Present Value Interest Factor PVIFA= Present Value Interest Factor for an Annuity Price of bond= PVIF x Redemption value + PVIFA x interest payment per period PVIFA

(with excel) PV,8%,10,-1,000 x 5%,-1,000 = $798.70 straight- debt value

4.

Based on your answers to the three preceding questions, what is the minimum price (or "floor" price) at which the Neumans bonds should sell?

*I only need the answer to 4... thank you!!