Question
2 questions 3.(TCO 4) What is the approximate yield to maturity of an 8% coupon bond with a par value of $1,000? The bond is
2 questions
3.(TCO 4) What is the approximate yield to maturity of an 8% coupon bond with a par value of $1,000? The bond is currently selling for $920 and has five years to maturity.
4.(TCO 5) A convertible bond has a face value of $1,000 and the conversion price is $35 per share. The stock is selling at $30 per share. The bond pays $75 per year in interest and is selling in the market for $925. It matures in seven years. Market rates are 10% annually. (I) What is the conversion ratio? (II) What is the conversion value?
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Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
