The Following data apply to neuman Corporation's convertible bonds:
- Maturity: 10
- Par value: $1,000.00
- Annual coupon: 5.00%
- Stock price: $30.00
- Conversion price: $35.00
- Straight-debt yeild: 8.00%
Required:
Question 1: What is the bond's conversion ratio?
Question 2: What is the bond's conversion value?
Question 3: What is the bond's straight-debt value?
Note: Please show basic calculation