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with show work please Manpower Electric Company has 8 percent convertible bonds outstanding. Each bond has a $1,000 par value. The conversion ratio is 20,

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Manpower Electric Company has 8 percent convertible bonds outstanding. Each bond has a $1,000 par value. The conversion ratio is 20, the stock price $34, and the bonds mature in 11 years. Use Appendix B and Appendix D as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. What is the conversion value of the bond? (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Conversion value I b. Assume after one year that the common stock price falls to $30.00. What is the conversion value of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. Also assume that after one year interest rates go up to 10 percent on similar bonds. There are 10 years left to maturity. What is the pure value of the bond? Use semiannual analysis. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Pure value of the bond I I d. Will the conversion value of the bond (part b) or the pure value of the bond (part c) have a stronger influence on its price in the market? 0 Conversion value of the bond 0 Pure value of the bond e. If the bond trades in the market at its pure boncl value, what would be the conversion premium (stated as a percentage ofthe conversion value)? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Conversion premium percentage %

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