Five years ago, the Williams Company issued $10 million of convertible bonds with a par value of $1,000 each and a coupon rate of 6%, and with each convertible into 20 shares. They will mature twenty years from now. The stock is now trading at $60 per share. The market interest rate is 8%.
16. What is the conversion price?
17. What is the conversion value?
18. What is the conversion ratio?
19. What is the pure bond value?