You have been hired to value a new 20-year callable, convertible bond. The bond has a 5.4 percent coupon, payable semiannually, and its face value is $1,000. The conversion price is $56, and the stock currently sells for $43.

a.What is the minimum value of the bond? Comparable nonconvertible bonds are priced to yield 6 percent. (Round your answer to 2 decimal places, dont round immediate calculation)

b.What is the conversion premium for this bond? (Round your answer to 2 decimal places, dont round immediate calculation)