Question: Please let me know and round to the nearest tenth for both You have been hired to value a new 25-year callable, convertible bond. The

Please let me know and round to the nearest tenth for both

You have been hired to value a new 25-year callable, convertible bond. The bond has a 4 percent coupon, payable semi-annually, and its face value is $1,000. The conversion price is $65, and the stock currently sells for $45. What is the minimum value of the bond? Comparable nonconvertible bonds are priced to yield 5 percent. What is the conversion premium for this bond

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