You have been hired to value a new 30-year callable, convertible bond. The bond has a 6.4% coupon, payable annually. The conversion price is $15, and the stock currently sells for $4.81. The stock price is expected to grow at 11% per year. The bond is callable at $110, but, based on prior experience, it wont be called unless the conversion value is $120. The required return on this bond is 8%. Assume par value of the bond is $100.

You have been hired to value a new 30-year callable, convertible bond. The bond has a 6.4% coupon, payable annually. The conversion price is $15, and the stock currently sells for $4.81. The stock price is expected to grow at 11% per year. The bond is callable at $110, but, based on prior experience, it won't be called unless the conversion value is $120. The required return on this bond is 8%. Assume par value of the bond is $100. What value would you assign to this bond? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Bond value