Question
A convertible bond has a coupon of 7 percent, paid semiannually, and will mature in 18 years. If the bond were not convertible, it would
A convertible bond has a coupon of 7 percent, paid semiannually, and will mature in 18 years. If the bond were not convertible, it would be priced to yield 6 percent. The conversion ratio on the bond is 20 and the stock is currently selling for $40 per share. What is the minimum value of this bond?
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Pricing Analytics Models And Advanced Quantitative Techniques For Product Pricing
Authors: Walter R. Paczkowski
1st Edition
1138623938, 9781138623934
