Question
A firm issues the convertible debt shown above. The price of stock in this company on July 1, 2008 is $6.00. What is the minimum
A firm issues the convertible debt shown above. The price of stock in this company on July 1, 2008 is $6.00. What is the minimum call price that would make a bondholder prefer to accept the call rather than convert?
par plus 12%
par plus 1.2%
par
par plus 8%
| Coupon | 0% |
| Conversion Ratio: | 180 shares per $1,000 principal amount |
| Call Date: | July 1, 2008 |
| Maturity: | July 1, 2015 |
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Economics For Financial Markets
Authors: Brian Kettell
1st Edition
0750653841, 978-0750653848
