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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
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)
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