You have been hired to value a new 20-year callable, convertible bond. The bond has a...

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You have been hired to value a new 20-year callable, convertiblebond. The bond has a coupon rate of 5.5 percent, payable annually.The conversion price is $97 and the stock currently sells for$39.10. The stock price is expected to grow at 11 percent per year.The bond is callable at $1,300; but based on prior experience, itwon't be called unless the conversion value is $1,400. The requiredreturn on this bond is 8 percent.

What value would you assign to this bond? (Do not roundintermediate calculations and round your answer to 2 decimalplaces., e.g., 32.16.)

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You have been hired to value a new 20-year callable, convertiblebond. The bond has a coupon rate of 5.5 percent, payable annually.The conversion price is $97 and the stock currently sells for$39.10. The stock price is expected to grow at 11 percent per year.The bond is callable at $1,300; but based on prior experience, itwon't be called unless the conversion value is $1,400. The requiredreturn on this bond is 8 percent. What value would you assign to this bond? (Do not roundintermediate calculations and round your answer to 2 decimalplaces., e.g., 32.16.)