Use the following information on a convertible bond issued by Snap, Inc. for questions 27- 30. Issuer: Snap Issue Date: 1 August 2019 Maturity Date: 1 August 2026 Interest: 0.75% payable semi-annually on 1 Feb and 1 August Issue Size: $1,000,000,000 Par Value: $1,000 Conversion Ratio: 43.8481 (based on $1,000 par value) Convertible Bond Price on beginning of day, 1 August 2019: 108.76 (% of par) Share Price on 1 August 2019, market open: 16.29 27.(2 pts.) What is the initial conversion price? 28. (3 pts.) Snap, Inc. also included a call provision in these bonds such that they can repurchase the bonds at any point after August 6, 2023. How does this call option affect the price of the bonds relative to an otherwise equal convertible bond without the call provision? Explain your answer in 1-2 sentences. 29. (5 pts.) Suppose that on August 1, 2021, Snap's share price is $30. What is the lowest possible value of the convertible bond? Explain your answer. 30. (5 pts.) From the issuer's perspective, what are the advantages of financing with a convertible bond relative to i) equity and ii) straight, non-convertible debt? Use the following information on a convertible bond issued by Snap, Inc. for questions 27- 30. Issuer: Snap Issue Date: 1 August 2019 Maturity Date: 1 August 2026 Interest: 0.75% payable semi-annually on 1 Feb and 1 August Issue Size: $1,000,000,000 Par Value: $1,000 Conversion Ratio: 43.8481 (based on $1,000 par value) Convertible Bond Price on beginning of day, 1 August 2019: 108.76 (% of par) Share Price on 1 August 2019, market open: 16.29 27.(2 pts.) What is the initial conversion price? 28. (3 pts.) Snap, Inc. also included a call provision in these bonds such that they can repurchase the bonds at any point after August 6, 2023. How does this call option affect the price of the bonds relative to an otherwise equal convertible bond without the call provision? Explain your answer in 1-2 sentences. 29. (5 pts.) Suppose that on August 1, 2021, Snap's share price is $30. What is the lowest possible value of the convertible bond? Explain your answer. 30. (5 pts.) From the issuer's perspective, what are the advantages of financing with a convertible bond relative to i) equity and ii) straight, non-convertible debt