Tulsa Drilling Company has $$1\mathrm{.}2$ million in $10$ percent convertible bonds outstanding. Each bond has a $$1,000$ par value. The conversion ratio is $50,$ the stock price is $$34,$ and the bonds mature in $10$ years. The bonds are currently selling at a conversion premium of $$70$ over the conversion value. Use $Appendix{B}_{?}$ and AppendixDasanappro$mateanswer,butcalculateyourfina{l}_{?}$ answer using the formula and financial calculator methods.

a$.$ Today, one year later, the price of Tulsa Drilling Company common stock has risen to $$44.$ What would your rate of return be if you had purchased the convertible bond one year ago and sold it today? Assume that on the date of sale, the conversion premium has shrunk from $$70$ to $$20.($Hint: Don't forget to include the interest payment for the first year$)($Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.$)$

Rate of return

b$-1.$ Assume the yield on similar nonconvertible bonds has fallen to $10$ percent at the time of sale. What would the pure bond value be at that point? $($Use semiannual analysis.$)($Do not round intermediate calculations. Round your final answer to $2$ decimal places.$)$

Pure bond value