=+a straight bond of similar risk is currently 5%. a. Calculate the straight bond value of the

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=+a straight bond of similar risk is currently 5%.

a. Calculate the straight bond value of the bond.

b. Calculate the conversion (or stock) value of the bond when the market price of the common stock is €40, €45, €50, €53, and €55 per share.

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Principles Of Managerial Finance

ISBN: 9781292261515

15th Global Edition

Authors: Chad J. Zutter, Scott Smart

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