Question: Please see the question in below 4. A convertible bond is selling at par ($1,000). The bond has 10 years to maturity and pays 6%

Please see the question in below

4. A convertible bond is selling at par ($1,000). The bond has 10 years to maturity and pays 6% annual coupon interest. Similar straight bonds (non-convertible) are priced to yield 8%. The bond's conversion ratio is 20 and the current stock price is $45. a ) What is the value of an equivalent straight bond without a conversion option? b) Explain why there are investors who are willing to pay $1,000 for the convertible bond

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