Question
A convertible bond has a coupon of 8 percent, paid semiannually, and will mature in 12 years. If the bond were not convertible, it would
A convertible bond has a coupon of 8 percent, paid semiannually, and will mature in 12 years. If the bond were not convertible, it would be priced to yield 7 percent. The conversion ratio on the bond is 30 and the stock is currently selling for $44 per share. What is the minimum value of this bond?
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
7th Edition
0273658492, 978-0273658498
