In excel Please, Thanks 1-A certain convertible bond has a conversion ratio of 40 and a conversion premium of 15 %. The current market price of the…

In excel Please, Thanks

 1-A certain convertible bond has a conversion ratio of   40 and a conversion premium of  15 ​%.  The current market price of the underlying common stock is  ​$36 .  What is the​ bond’s conversion​ equivalent?

The​ bond’s conversion equivalent is  $__________________

2-You are considering investing  ​$820 in Higgs B. Technology Inc. You can buy common stock at  ​$27.33 per​ share; this stock pays no dividends. You can also buy a convertible bond​ ($1,000 par​ value) that is currently trading at  ​$820

and has a conversion ratio of  25 .  It pays  ​$48 per year in interest. If you expect the price of the stock to rise to

​$35.93 per share in 1​ year, which instrument should you​ purchase?

3-A certain 6​%  annual coupon rate convertible bond​ (maturing in 20​ years) is convertible at the​ holder’s option into

20 shares of common stock. The bond is currently trading at ​$800 . The stock​ (which pays 72 ​¢ a share in annual​ dividends) is currently priced in the market at ​$30.19 a share.

a. What is the​ bond’s conversion​ price?

b. What is its conversion​ ratio?

c. What is the conversion value of this​ issue? What is its conversion​ parity?

d. What is the conversion​ premium, in dollars and as a​ percentage?

e. What is the​ bond’s payback​ period?

f. If comparably​ rated, nonconvertible bonds sell to yield  8 % comma what is the investment value of the​ convertible?

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