XYZ Corp. has just issued a 10-year convertible bond with a coupon rate of 6% annual coupon payments. The bond has a conversion price of $80. The firms stock is selling for $30 per share. The owner of the bond will be forced to convert if the bonds conversion value is ever greater than or equal to $1,100. The required return on an otherwise identical bond is 7%.

1. What is the bonds conversion value? What is the straight bond value?
2. What is the minimum value of the bond?
3. If the stock price were to grow by 20% per year forever, how long would it take for the bonds conversion value to exceed $1,100?