Problem:
O'reilly Moving Company has a $1,000 par value convertible bond outstanding that can be converted into 25 shares of common stock. The common stock is currently selling for $36.25 a share, and the convertible bond is selling for $970.
Required:
Question 1: What is the conversion value of the bond
Question 2: What is the conversion premium?
Question 3: What is the conversion price?
Note: Please provide full description.