Given the information below, answer the following questions.

A convertible bond has the following features:

Principal $1,000

Maturity date 20 years

Interest $80 (8% coupon)

Call price $1,050

Conversion Price $65 a share

a. What is this bonds conversion right (round to 3 decimals)?

b. If comparable non-convertible debt offered an annual yield of 12 percent, what would be the value of this bond as debt?

c. If the stock were selling for $52, what is the value of the bond in terms of stock?

d. What would be the minimum price (i.e., no premium) of the convertible bond given (b) and (c)?

e. If the price of the convertible bond were $960, what is the premiums paid given (b) and (c)?

f. If the price of the stock were $35, what would be the minimum price of the convertible bond?

g. What is the probability that the bond will be called when the price of the stock is $52?

h. If the price of the stock rose to $73, what would happen to the price of the convertible bond?

i. If the price of the stock were $73, what would the investor receive if the convertible bond were called?