The Olsen Mining Company has been very successful in the last five years. Its $1,000 par...

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The Olsen Mining Company has been very successful in the lastfive years. Its $1,000 par value convertible bonds have aconversion ratio of 34. The bonds have a quoted interest rate of 9percent a year. The firm’s common stock is currently selling for$46.10 per share. The current bond price has a conversion premiumof $10 over the conversion value. a. What is the current price ofthe bond? (Do not round intermediate calculations and round yourfinal answer to 2 decimal places.) b. What is the current yield onthe bond (annual interest divided by the bond’s market price)? (Donot round intermediate calculations. Input your answer as a percentrounded to 2 decimal places.) c. If the common stock price goesdown to $25.90 and the conversion premium goes up to $100, whatwill be the new current yield on the bond? (Do not roundintermediate calculations. Input your answer as a percent roundedto 2 decimal places.)

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The Olsen Mining Company has been very successful in the lastfive years. Its $1,000 par value convertible bonds have aconversion ratio of 34. The bonds have a quoted interest rate of 9percent a year. The firm’s common stock is currently selling for$46.10 per share. The current bond price has a conversion premiumof $10 over the conversion value. a. What is the current price ofthe bond? (Do not round intermediate calculations and round yourfinal answer to 2 decimal places.) b. What is the current yield onthe bond (annual interest divided by the bond’s market price)? (Donot round intermediate calculations. Input your answer as a percentrounded to 2 decimal places.) c. If the common stock price goesdown to $25.90 and the conversion premium goes up to $100, whatwill be the new current yield on the bond? (Do not roundintermediate calculations. Input your answer as a percent roundedto 2 decimal places.)