They have a

14%

annual coupon interest rate, whereas the interest rate on straight bonds of similar risk is

16%

\ a. Calculate the straight bond value of this bond\ b. Calculate the conversion (or stock) value of the bond when the market price is

$15

per share of common stock\ c. What is the minimum market value of the bond?\ a. The straight value of the bond is

$

(Round to the nearest cent)

Determining values - Convertible bond Craig's Cake Company has an outstanding issue of 21 -year convertible bonds with a $2,000 par value. These bonds are convertible into 90 shares of common stock They have a 14% annual coupon interest rate, whereas the interest rate on straight bonds of similar risk is 16% a. Calculate the straight bond value of this bond. b. Calculate the conversion (or stock) value of the bond when the market price is $15 per share of common stock c. What is the minimum market value of the bond? a. The straight value of the bond is $ (Round to the nearest cent)