You have been hired to value a new 30-year callable, convertible bond. The bond has a coupon rate of 6.4 percent, payable semiannually, and its face value is $1,000. The conversion price is $68, and the stock currently sells for $55.

a.	What is the minimum value of the bond? Comparable nonconvertible bonds are priced to yield 7 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Minimum value of the bond

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b.	What is the conversion premium for this bond? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)