Maple Aircraft has issued a convertible bond at 4.75% interest due 2020. The market price of...

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Maple Aircraft has issued a convertible bond at 4.75% interestdue 2020. The market price of the convertible is 91% of face value(face value is $1,000). The current price of the common stock is$41.50 and the conversion price is $47. Assume that the value ofthe bond in the absence of a conversion feature is about 65% offace value. How much is the convertible holder paying for theoption to buy one share of common stock?
A. $12.22
B. $10.79
C. $5.5
D. $13.12
Please Show the steps on how to get the answer.

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Maple Aircraft has issued a convertible bond at 4.75% interestdue 2020. The market price of the convertible is 91% of face value(face value is $1,000). The current price of the common stock is$41.50 and the conversion price is $47. Assume that the value ofthe bond in the absence of a conversion feature is about 65% offace value. How much is the convertible holder paying for theoption to buy one share of common stock?A. $12.22B. $10.79C. $5.5D. $13.12Please Show the steps on how to get the answer.