Use the following information on a convertible bond issue

Issuer: Tesla, Inc.

Issue Date: 15 March 2017

Maturity Date: 15 March 2022

Interest: 2.375% payable semi-annually

Issue Size: $977,500,000

Issue Price: $1,000

Conversion Ratio: 3.0534

Convertible Bond Price on beginning of day, 18 March 2020: 148.62 (% of par)

Share Price on 18 March 2020, market open: 389.00

Share Price on 18 March 2020, market close: 359.01

7. What is the conversion value for this convertible bond at the beginning of the day, 18 March 2020?

8. What has likely happened to the Teslas convertible bond price during the day (increase, decrease, or stay the same)? Explain in 1-2 sentences.