The holders of Matangi Corporation's bonds with a face value of $1,000 can exchange that bond for 40 shares of Matangi stock, currently selling for $30.26 per share. a. What is the conversion price, and what are the current conversion premium and conversion value of the convertible bond? Suppose an otherwise identical Matangi Corporation bond (the same face value of $1,000, the same coupon and the same time to maturity) is currently selling for $1,126.43 while the convertible bond is selling for $1,325.67. b. What is the current option value of the convertible bond? c. What are bondholders likely to do? How will the shareholders in Matangi like that? When the convertible debt and non-convertible debt were issued, would they have sold for the same price