You have invested in a semiannual coupon convertible bond that has a conversion ratio of 15. The market price of the companys stock is $45 per share. The face value of the bond is $1,000 with a coupon rate of 7.5%. The bond is due in 15 years and similar non-convertible bonds are yielding 10% YTM.

a. Calculate the straight bond value of this bond.

b. Assume annual coupon payments. Calculate the straight bond value of this bond.

c. Calculate the conversion value of the convertible bond.