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An 1 1 - year maturity convertible bond with a face value of $ 1 , 0 0 0 and a 5 % coupon on
An year maturity convertible bond with a face value of $ and a coupon on a company with a bond rating of Aaa is selling for $ The bond pays interest annually. Each bond can be exchanged for shares, and the stock price currently is $ per share. Other Aaarated bonds with the same maturity would sell at a yield to maturity of What is the value of the bondholders call option? Do not round intermediate calculations. Round your answer to decimal places.
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