A: $529 is wrong its calling for the following equation for A.

I also need B and C please.

Determining valuesConvertible bond Craig's Cake Company has an outstanding issue of 10-year convertible bonds with a $800 par value. These bonds are convertible into 85 shares of common stock. They have a 9% annual coupon interest rate, whereas the interest rate on straight bonds of similar risk is 16%. a. Calculate the straight bond value of this bond. b. Calculate the conversion (or stock) value of the bond when the market price is $21 per share of common stock. c. What is the minimum market value of the bond? a. The straight value of the bond is $ 529. (Round to the nearest cent.) The straight bond value of a convertible bond is the price at which it would sell in the market without the conversion feature. This value is found by determining the value of a nonconvertible bond with similar payments issued by a firm with the same risk. The straight bond value is typically the floor, or minimum, price at which the convertible bond would be traded. The straight bond value equals the present value of the bond's interest and principal payments discounted at the interest rate the firm would have to pay on a nonconvertible bond. The basic model for the straight value, Bo, of a convertible bond is given by the following formula: Bo = 1x E t=1 (1+r)" 1 1 + Mx (1+r)" where B, =value of the bond at time 0 1 = annual interest paid in dollars n=number of years to maturity M= par value in dollars 1o =required return on a bond