Question: Ashton Long, a bond analyst, is analyzing a convertible bond. The characteristics of the bond are given below. Convertible Bond Characteristics Par value $1,000 Annual

Ashton Long, a bond analyst, is analyzing a convertible bond. The characteristics of the bond are given below. Convertible Bond Characteristics Par value $1,000 Annual coupon rate (annual pay) 8% Conversion ratio 28 Market price 107% of par Straight value 99% of par Underlying Stock Characteristics Current market price $25 per share Compute the bond's conversion value and conversion price. (Round your conversion price to 2 decimal places.) Conversion value Conversion price

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