Question: Lummer plc has issued 60m 15-year 8.5 per cent coupon bonds with a par value of 100. Each bond is convertible into 40 shares of

Lummer plc has issued £60m 15-year 8.5 per cent coupon bonds with a par value of £100. Each bond is convertible into 40 shares of Lummer ordinary shares, which are currently trading at £1.90.
a. What is the conversion price?
b. What is the conversion premium?
c. What is the conversion value of the bond?

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