Problem 15-02 Given the following information concerning a convertible bond Coupon: 6 percent ($60 per $1,000 bond) Exercise price: $24 Maturity date: 20 years Call price: $1,040 Price of the common stock: $28 a. If this bond were nonconvertible, what would be its approximate value If comparable interest rates were 9 percent? Assume that the bond pays Interest annualy. Use Appendix 3 and Appendix D to answer the question, Round your answer to the nearest dollar b. How many shares con 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 stock? Use the number of shores into which the bond may be converted into from porta. Round your answer to the nearest dollar $ d. What is the current minimum price that the bond will command? Round your answer to the nearest dolar e. Is there any reason to anticipate that the firm will call the bond? The price of the stock is -Select- the band's exercise price. So the firm -Select- force conversion by calling the bond. 1. What do Investors receive if they do not convert the bond when it is called? Round your answer to the nearest dollar 9. If the bond were called, would it be advantageous to convert? It Select advantageous to convert since the bond's value as stock is select- the call price