5 points 7. TRL Co. needs to raise $60 million to expand its business internationally. It currently has 10 million shares outstanding which sells for $52 and has an expected growth rate of 5.5% annually. The investment banker suggests to raise the needed capital by selling 30-year convertible debentures at $1,000 par value. The coupon rate will be equal to 9% and each debenture could be converted into 35 shares of stock. The bonds would be noncallable for 10 years after which they would be callable at a price of $1,105. This call price would decline by $4 per year in year 11 and thereafter. Assume that bonds may be called or converted only at the end of a year. Also, assume that the management would call eligible bonds if the conversion value exceeds 40% of par value. At what year do you expect the bonds will forced into conversion with a call? Year 11 Year 12 Year 13 Year 14