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to maturity and pays a semiannual coupon rate of 7.675% (L. 3.8375% per period). The issue is callable by the company at par and can be coriverted into 48.870 shares of Bildon common skock. The bond currently sells for 5955 (relative to par value of $1,000 ), and dildon stock trades at $12.115 a share. a. Calculate the current corversion value for the bond. Do not round intermediate calculations. Round your answer to the nearest cent 5 Is the cotiversion optian embedded in this bond in the money or eut of the money? The conversion option embedded is this bond is b. Colculate the conversion parity price for Biddon stock that would make converbion of the bond profitable, Do not round intermediate calcuiations. Round your answer to the thearest cent. 3 c. bidon does not currently gay its shareholders a dividend, hwving suspended these distribueions six months ago. What is the parback (i.e. breakeven time) for thin convertable security, and how should it be interpreted? Do not round intermedlate calculations. Round your answer to two decimal places The payback period would be (3) years. This is 63 as the bend matures in 7 vears. d. Calculate the canvertibles current vield to maturity, Do eot round intermedibte cabculations. Round your answer to two decimal places. If a "straight bildon fixed-income iswe with the same cash flows would yield 9.40%4, calcuiate the net value of the combinod options

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