Sweeney Pies has issued a zero-coupon 12-year bond that can be converted into 10 Sweeney shares. Comparable straight bonds are yielding 10%. Sweeney stock is priced at $62 a share. (Assume a face value of $1,000 and semi-annual compounding.) Suppose that you had to make a now-or-never decision on whether to convert or to stay with the bond. Which would you do? If the convertible bond is priced at $406, how much are investors paying for the option to buy Sweeney shares? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. If, after one year, the value of the conversion option is unchanged, what is the value of the convertible bond? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.