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Standard Olive Company of California has a $1,000 par value convertible bond outstanding with a coupon rate of 10 percent and a maturity date of

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Standard Olive Company of California has a $1,000 par value convertible bond outstanding with a coupon rate of 10 percent and a maturity date of 20 years. It is rated As, and competitive, nonconvertible bonds of the same risk class carry a 10 percent yield. The conversion ratio is 20. Currently the common stock is selling for $30 per share on the New York Stock Exchange . What is the conversion price? (Round your answer to 2 decimal places.) Converson ince b. What is the conversion value (Round your answer to 2 decimal places.) Conversion value c. Compute the pure bond value (Use semiannual analysis.) Use Appendix and Appendix D as an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Bond value d. Calculate the crossover point at which the pure bond value equals conversion value (Do not round intermediate calculations.

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