20. Convertible Bonds (LO2, CFA5) Ashton Long, a bond analyst, is analyzing a convertible bond. The characteristics
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20. Convertible Bonds (LO2, CFA5) Ashton Long, a bond analyst, is analyzing a convertible bond.
The characteristics of the bond are given below.
Convertible Bond Characteristics Par value $1,000 Annual coupon rate (annual pay) 7.2%
Conversion ratio 25 Market price 105% of par Straight value 99% of par Underlying Stock Characteristics Current market price $32 per share Compute the bond’s conversion value and conversion price.
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Related Book For 
Fundamentals Of Investments Valuation And Management
ISBN: 9781260013979
9th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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