Use the following to answer questions 28-30. Suppose you own a convertible bond that has a conversion ratio equal to 40. Each convertible bond has a face value equal to $1,000. The current market value of the company's common stock is $30, and the bond is selling for $1,100. Question 28 (2.5 points) If you convert the bond into common stock, how many shares of stock can you receive? 1) 20 shares 2) 30 shares 3) 40 shares 4) 50 shares 5) 100 shares What is the conversion price? 01) $15 2) $19 03) $20 4) $25 5) $30 (a) If you convert the bond into common stock, what is the conversion value? (b) If you need money to pay your rent, should you sell the bond, or should you convert the bond into common stock and then sell the stock? 1) (a) $1,100: (b) Sell the bond. 2) (a) $1,100; (b) Convert and then sell the stock. 3) (a) $1,200; (b) Sell the bond. 4) (a) $1,200; (b) Convert and then sell the stock. 5) (a) $1,000; (b) Sell the bond