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A convertible bond has the following characteristics: Principal = $1,000 Coupon: 5.5% Maturity: 15 years Call price: $1,050 Conversion price: $37 (or 27 shares) Market
A convertible bond has the following characteristics:
- Principal = $1,000
- Coupon: 5.5%
- Maturity: 15 years
- Call price: $1,050
- Conversion price: $37 (or 27 shares)
- Market price of the common stock: $35
- Market price of the bond: $1,040
What is the value of the bond based on the stock price? ___
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
