Bond circular information: Issue Date: Maturity Interest: Issue Price: Conversion period Conversion ratio: 1 January 2017 1 January 2022 (5 years) 4.5% annual coupon with first payment on 1 January 2018 100% of par with face value of $100,000 Any time after 1 February 2017 Each bond of par value of $100,000 is convertible into 5,000 ordinary shares Market Information Share price issue date Annual dividend per share Convertible bond price 2 January 2018 Share price on 1 January 2018 15 $0.50 $120,000 $22 Question1: Calculate the initial conversion price Question 2 Calculate the premium payback period on the date the bond was issued