Phillips Inc. issued some 30-year ,$500 par value , 8 % coupon convertible debentures 15 year ago. Interest is paid annually , and the next interest…

Phillips Inc. issued some 30-year ,$500 par value , 8 % coupon convertible debentures 15 year ago. Interest is paid annually , and the next interest payment is one year from now. The conversion price is $5.

a. Find conversion value today of these debentures it the stock price is currently $8 a share.

b. Determine the investment value today of these debentures if interest rate on comparable non convertible debentures is 10% per year.

c. If the present premium is $60, what is the present percentage conversion premium