Question: Determining values - Convertible bond Eastem Clock Compariy has an oufstanding issue of convertble bends with a 5500 par value. These bonds are convert We

Determining values - Convertible bond Eastem Clock Compariy has an oufstanding issue of convertble bends with a 5500 par value. These bonds are convert We into 40 shares of common stock. They have o 14% annual coupon interest rate and a 24 year maturity. The interest rale on a straight bond of aimilar risk is currently 11% a. Calculate the straight bond value of the bond. b. Calculate the conversion (or stock) valive of the bond when the market price of the common stock is 325 per share. c. What is the least you would expect the bond to sell for, regardioss of the common stock price behavior? a. The straight value of the bohad is 5 (Round to the nearest cent.) b. The conversion (or slock) value of bse bond when the market price of the commin slock is 325 per share is 1 (flound to the nescnet dollar) c. The ieaut you would expect the bond to welf for, regardless of the common atock price behavior is $ (Round to ehe nearest cent)

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