Question: 14. Consider the convertible bond by Miser Electronics: par value = $1, 000 coupon rate = 8.5% market price of convertible bond = $900 conversion

14. Consider the convertible bond by Miser Electronics: par value = $1, 000 coupon rate = 8.5% market price of convertible bond = $900 conversion ratio = 30 estimated straight value of bond = $700 Assume that the price of Miser Electronics common stock is $25 and that the dividend per shareis $1 per annum. Calculate each of the following: a. conversion value b. market conversion price c. conversion premium per share d. conversion premium ratio e. premium over straight Tvalue f. yield advantage of bond g. premium payback period

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