A. Kendrick Lamar has a balance in his savings account of $10,000. He wants to invest a 10…

A. Kendrick Lamar has a balance in his savings account of $10,000. He wants to invest a 10 percent of this amount into a convertible bond issued by the Hamptom Corp. The market price of Hamptom Corp. common stock is $85 per share. The convertible bond has a conversion ratio of 30. This bond has a 9 percent annual coupon rate (paid quarterly), a maturity of 15 years, and a face value of $1,000. Nonconvertible bonds with similar attributes are yielding 15 percent. Calculate the straight bond value for this bond.