Question: Steven Long, a bond analyst, is analyzing a convertible bond. The characteristics of the bond are given below. Convertible Bond Characteristics Par value $ 1,000

Steven Long, a bond analyst, is analyzing a convertible bond. The characteristics of the bond are given below.

Convertible Bond Characteristics
Par value $ 1,000
Annual coupon rate (annual pay) 7.4 %
Conversion ratio 25
Market price 113 % of par
Straight value 99 % of par
Underlying Stock Characteristics
Current market price $ 27 per share

Compute the bonds conversion value and conversion price. (Round your conversion price to 2 decimal places.)

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