Question: 33) 9 points Harvey Corp. has debentures (face value $1000) outstanding that are convertible into common stock at a price of $10 per share. The

33) 9 points Harvey Corp. has debentures (face value $1000) outstanding that are convertible into common stock at a price of $10 per share. The debentures pay an interest rate of 10 percent annually and have a remaining life of 7 years. Non convertible debentures of similar risk have a YTM of 14%. The current price of Harvey Corp.stock is $12 a) Compute the straight bond value of the debenture b) Compute the conversion value of the debenture c) What is that absolute minimum price the debentures would sell for today? d) If the debentures are called at 110% of par or 1100, what should owners of these debentures do

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