Problem 15-02 Given the following information concerning a convertible bond: Coupon: 5 percent ($50 per $1,000 bond) Exercise price: $26 Maturity date: 15 years Call price: $1,040 Price the common stock: $31 .. If this bond were nonconvertible, what would be its approximate value of comparable interest rates were 7 percent? Assume that the bond pays interest annually. Use Appendix and Appendix to answer the question. Round your answer to the nearest dollar b. How many shares can the bond be converted into Round down your answer to the nearest whole number. Shares c. What is the value of the bond in terms of stocko Use the number of shares into which the bond may be converted into from part a. Round your answer to the nearest dollar 5 d. What is the current minimum price that the bond will command? Round your answer to the nearest dollar $ .. Is there any reason to anticipate that the firm will call the bond? The price of the stock is te the band's exercise price. So the time force conversion by calling the bond. What do investors receive if they do not convert the bond when it is called? Round your answer to the nearest dolar. 5 of the bond were called, would it be advantageous to convert? It see advantageous to convert since the band's value as stock is wat the call price