The following data refers to the McDonald's issue of convertible bonds:

Maturity: 10 years

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? (show work)

2. What is the bond's conversion value at t=0, assuming no growth? (show work)

3. What is the bond's straight debt value? (show work)

4. What is the minimum price (or "floor" price) at which the bonds should sell? (show work)