Question
1. You bought a ZipCo bond on 1/15/20. Its coupon rate is 6% paid semiannually on Jan 1 and July 1. How much accrued interest
1. You bought a ZipCo bond on 1/15/20. Its coupon rate is 6% paid semiannually on Jan 1 and July 1. How much accrued interest did you pay the seller?
2. N-Corps convertible bond has a conversion ratio of 40, and its stock is currently trading for $32/share. A. What is its Conversion Price? B. What is the bonds current market price?
3. Estimate the current true value of Geo Corp stock that you expect to pay a dividend of $1.80/share next year and grow at a 4%/year rate in the future. You believe the cost of equity is 7.0%.
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
3rd Edition
0470891696, 978-0470891698
