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You have purchased a convertible bond for $1106.88. It is convertible into 42 shares of the firm's common stock. The current stock price is $16.80

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You have purchased a convertible bond for $1106.88. It is convertible into 42 shares of the firm's common stock. The current stock price is $16.80 per share Required: a. What is the market conversion value of the bond? (Round your answer to 2 decimal places.) Market conversion value $ 705.60 b. What is the conversion premium? (Round your answer to 2 decimal places.) Conversion premium c. Will you choose to convert the stock now? Yes O NO

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