A certain $7\%$ annual coupon rate convertible bond $($ $$1,000$ par value, maturing in $20$ years$)$ is convertible at

the holder's option into $23$ shares of common stock. The bond is currently trading at $$820.$ The stock $($which

pays $83$ a share in annual dividends$)$ is currently priced in the market at $$34\mathrm{.}12$ a share.

a$.$ What is the bond's conversion price?

b$.$ What is its conversion ratio?

c$.$ What is the conversion value of this issue? What is its conversion parity?

d$.$ What is the conversion premium, in dollars and as a percentage?

e$.$ What is the bond's payback period?

f$.$ If comparably rated, nonconvertible bonds sell to yield $9\%,$ what is the investment value of the convertible?

a$.$ The bond's conversion price is $$.($Round to the nearest cent.$)$

b$.$ The conversion ratio is shares. $($Round to the nearest integer.$)$

c$.$ The conversion value of this issue is $$.($Round to the nearest cent.$)$

The conversion parity of this issue is $.($Round to the nearest cent.$)$

d$.$ The conversion premium in dollars is $$.($Round to the nearest cent.$)$

The conversion premium as a percentage is $\%.($Round to two decimal places.$)$

e$.$ The bond's payback period is years. $($Round to one decimal place.$)$

f$.$ The investment value of the convertible is $$.($Round to the nearest cent.$)$