A convertible bond has the following features: Coupon 5.25% Maturity June 15, 2017 Market price of bond

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A convertible bond has the following features:

Coupon 5.25%

Maturity June 15, 2017 Market price of bond $77.50 Market price of underlying common stock $28.00 Annual dividend $1.20 Conversion ratio 20.83 shares Calculate the conversion premium for this bond.

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Essentials Of Investments

ISBN: 9780697789945

8th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jul 26, 2024 11:03 AM

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A convertible bond has the following features: Coupon 5.25% Maturity June 15, 2017 Market price of bond

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Essentials Of Investments

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