Suppose also that the interest rate on similar straight debt had fallen from 8.75% to 5.75%. Under
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Suppose also that the interest rate on similar straight debt had fallen from 8.75% to 5.75%. Under these conditions, what is the current price of the straight-bond portion of the convertible bond? What is the current value if a bondholder converts a bond? What do you think would have happened to the price of the bonds?
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Muhammad Umair
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Related Book For 
Financial Management Theory And Practice
ISBN: 9781439078105
13th Edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
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