To Finance a new project at Bandar Seri Pertama, GTI Ltd decided to issue RM 40 million of 12%, RM1,000 convertible bond. The bond will mature in 10 years. If the investors convert the convertible bond, they will get 20 units of common share per bond. The companys common share is currently selling at RM35 per unit. The company expects its operating income to increase to RM25,000,000 after financing with convertible bond. The company has 50 million shares outstanding and tax rate at 30%. The GTI Ltd pays RM5 million preferred share dividend per annum.

Compute: i) The conversion price ii. The Conversion value per bond iii. The Conversion premium in RM iv. The Conversion premium in Percentage