Question
A firm issues a convertible bond at an initial offering price of $1,000. Each bond can be converted into 30 shares of common equity three
A firm issues a convertible bond at an initial offering price of $1,000. Each bond can be converted into 30 shares of common equity three years from today. What is the conversion price of the equity?
a. $33
b. $42
c. $970
d. $1,030
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77835425, 978-0077835422
