Western Pipeline Inc. has been very successful in the last five years. Its $1 ,000 par value convertible bonds have a conversion ratio of 28. The bonds have a quoted interest rate of 5 percent a year, paid semiannually. The firm's common stock is currently selling for $43.50 per share. The current bond price has a conversion premium of $10.00 over the conversion value.

a. What is the current price of the bond?

b. What is the current yield on the bond?

c. What is the yield to maturity on the bond if it has seven years to maturity?

d. If the common stock price goes down to $22.50 and the conversion premium goes up to $100, what will be the new yield to maturity on the bond?