Assume that ABC Company successfully issues a 6% convertible bond, due 12 years from now at $1,000 per bond. Also, assume that the bond is convertible into 100 shares of stock anytime during the life...

Assume that ABC Company successfully issues a 6% convertible bond, due 12 years from now at $1,000 per bond. Also, assume that the bond is convertible into 100 shares of stock anytime during the life of the bond. Assume the common stock of the company is selling for $12 per share at the time the convertible bond is issued and is expected to grow 6% per year for foreseeable future the required rate of return on debt is 9%

Using the information above, calculate:

(a) market value

(b) floor value

 (c) conversion premium