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A convertible bond has a face value of $1,000 and the conversion price is $75 per share. The stock is selling at $36 per share.
A convertible bond has a face value of $1,000 and the conversion price is $75 per share. The stock is selling at $36 per share. The bond pays $60 per year in interest and is selling in the market for $965. It matures in 7 years. Market rates are 10% annually. (I) What is the conversion ratio? (II) What is the conversion value
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Regulation Of Securities Markets And Transactions
Authors: Patrick S. Collins
1st Edition
0470601965, 978-0470601969
