Question 22 (4 points) (Challenging) A two year convertible bond has a face value of $1000 and pays annual coupons of 6% of the face value. Similar regular (i.e. non-convertible) bonds trade at yields of 6%. At the end of the maturity of the bond, the bond holder can choose to receive the face value or exchange the bond against 10 shares of the issuer without any additional payment. The issuer's stock currently trades at $60, pays no dividends and has a volatility of .40. The risk-free rate is 2%. The following option values for non-dividend paying stock may be helpful: European put, X = $100, volatility = 40, current stock price = $60, T = 2: Price of this put = $40.84 European call, X = $100, volatility = .40, current stock price = $60, T = 2: Price of this call= $4.76 European put, X = $60, volatility = .40, current stock price = $60, T = 2: Price of this put = $14.31 European call, X = $60, volatility = .40, current stock price = $60, T = 2: Price of this call = $11.96 = If the bond was not convertible, the bond's current price would be $1000. How much more would you be willing to pay for the convertible bond? Express your answer in $ and round to two decimal places. If your answer is $5.674, please enter "5.67" in the answer box. A