Question: Problem 8 ( 5 points) A convertible bond has a par value of $1,000, but its current market price is $975. The current price of

Problem 8 ( 5 points) A convertible bond has a par value of $1,000, but its current market price is $975. The current price of the issuing company's stock is $26, and the conversion ratio is 34 shares. What is the bond's market conversion value and conversion premium? Would it be advisable for the bondholder to convert the stock at this time? Explain

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