Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company has an outstanding convertible loan with exact five-year term and a fixed coupon rate of 8%. The conversion price to shares is set

image text in transcribed

A company has an outstanding convertible loan with exact five-year term and a fixed coupon rate of 8%. The conversion price to shares is set at SEK 125 and you also have the following information: Face value of the convertible = SEK 10 000 Market price of the convertible = SEK 11 600 (= 116% of face value) The current share price = SEK 115 a/ The conversion value of the convertible is then: (1) b/ The price of a share if it is bought via this convertible is then? (1) A company has an outstanding convertible loan with exact five-year term and a fixed coupon rate of 8%. The conversion price to shares is set at SEK 125 and you also have the following information: Face value of the convertible = SEK 10 000 Market price of the convertible = SEK 11 600 (= 116% of face value) The current share price = SEK 115 a/ The conversion value of the convertible is then: (1) b/ The price of a share if it is bought via this convertible is then? (1)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ebay Tips And Tricks To Increase Your Ebay Sales

Authors: Jessica Wilson

1st Edition

1774854015, 978-1774854013

More Books

Students also viewed these Finance questions