Question
9. An investor comes to you and states that she has the option of converting her $2,000 XYZ Corporate Bond into 20.50 shares of XYZ
9. An investor comes to you and states that she has the option of converting her $2,000 XYZ Corporate Bond into 20.50 shares of XYZ common stock. If the XYZ Bond pays a coupon rate of 5.25%, has a call price of 105, and matures in 7 years, what is the exercise price of the conversion feature?
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
16th edition
1259307417, 978-1260153132, 1260153134, 978-1259307416
