You purchased a convertible bond tree years ago. It has a 7.5% coupon rate, par value of $1,000, interest is paid semiannually, and the bond matures in 6 years. If the firm stock currently trades at $41.50 per share, calculate conversion value (1 point):

$1286

$1000

$1328

$957

12. You purchased a convertible bond tree years ago. It has a 7.5% coupon rate, par value of $1,000, interest is paid semiannually, and the bond matures in 6 years. If the bond currently trades at $1,125 and firm stock currently trades at $41.50 per share, calculate conversion premium (1 point):

-15.3%

15.3%

12.5%

-7.5%

there is no extra information was given