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How to calculate the investment value and the conversion value of a convertible debenture?


Was wondering if anybody can help me on this.
Common Stock;
Current Marker price per share = 48
current dividend per share = 1.44
Convertible Debenture;
Coupon rate = 8% (semi annual payment)
Maturity = June 1,2017
Conversion Ration = 18 shares
Call Price = $1080 (non-callable for the next 3 yrs)
Yield to maturity on comparable "Non-convertible" bonds = 10%

How to calculate both the investment value and the conversion (equity) value for the convertible debenture as of june 1 2007?

Which one is more desirable for purchase by long term investor?

The investment value should be refering to the value of the debenture.

you must be doing FIN301. hee. me also la. I have no answers yet man.... don't give up ah...

What is Investment Value stated above?
Is it Face Value or Value of Debenture?

Does anyone know how to do? I'm also stuck!

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