Question: Your Client is Interested in the Discovery Cafe 14.875% bond maturing October 28, 2026. The bond is callable October 28, 2020 at a call premium

Your Client is Interested in the Discovery Cafe 14.875% bond maturing October 28, 2026. The bond is callable October 28, 2020 at a call premium of 11.000%. The bond is also convertible at $500/share. The common share is trading at $558.50 and the prevailing yield is 5.750% You buy the bond to settle October 28, 2015

The most you would pay for a $1000 bond if you knew that the bond would go to maturity is $

The most you would pay for a $1,000 bond if you knew that the bond would be called is $

The conversion value of the bond is $

The most you would pay for a $1000 bond is $

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