Assume you just paid $1,200 for a convertible bond that carries a 7% coupon and has 15

Question:

Assume you just paid $1,200 for a convertible bond that carries a 7½% and has 15 years to maturity. The bond can be converted into 24 shares of stock, which are now trading at $50 a share. Find the bond investment value of this issue, given that comparable non-convertible bonds are currently selling to yield 9%.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...