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A certain 7 % annual coupon rate convertible bond ( $ 1 , 0 0 0 par value, maturing in 2 0 years ) is
A certain annual coupon rate convertible bond $ par value, maturing in years is convertible at the holder's option into shares of common stock. The bond is currently trading at $ The stock which pays a share in annual dividends is currently priced in the market at $ a share. a What is the bond's conversion price? b What is its conversion ratio? c What is the conversion value of this issue? What is its conversion parity? d What is the conversion premium, in dollars and as a percentage? e What is the bond's payback period? f If comparably rated, nonconvertible bonds sell to yield what is the investment value of the convertible? a The bond's conversion price is $Round to the nearest cent. b The conversion ratio is shares. Round to the nearest integer. c The conversion value of this issue is $Round to the nearest cent. The conversion parity of this issue is Round to the nearest cent. d The conversion premium in dollars is $Round to the nearest cent. The conversion premium as a percentage is Round to two decimal places. e The bond's payback period is years. Round to one decimal place. f The investment value of the convertible is $Round to the nearest cent.
A certain annual coupon rate convertible bond $ par value, maturing in years is convertible at
the holder's option into shares of common stock. The bond is currently trading at $ The stock which
pays a share in annual dividends is currently priced in the market at $ a share.
a What is the bond's conversion price?
b What is its conversion ratio?
c What is the conversion value of this issue? What is its conversion parity?
d What is the conversion premium, in dollars and as a percentage?
e What is the bond's payback period?
f If comparably rated, nonconvertible bonds sell to yield what is the investment value of the convertible?
a The bond's conversion price is $Round to the nearest cent.
b The conversion ratio is shares. Round to the nearest integer.
c The conversion value of this issue is $Round to the nearest cent.
The conversion parity of this issue is Round to the nearest cent.
d The conversion premium in dollars is $Round to the nearest cent.
The conversion premium as a percentage is Round to two decimal places.
e The bond's payback period is years. Round to one decimal place.
f The investment value of the convertible is $Round to the nearest cent.
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