appendix b

appendix d

en the following information concerning a convertible bond: - Principal: $1,000 . Coupon: 6 percent Maturity: 12 years Call price: $1,060 Conversion price: $39 (that is, 25 shares) Market price of the common stock: $33 Market price of the bond: $1,030 3. What is the current yield of this bond Round your answer to two decimal places b. What is the value of the bond based on the market price of the common stock? Use the given above number of shares into which the bond may be converted. Round your answer to the nearest dollar What is the value of the common stock based on the market price of the bond? Use the given above number of shares into which the band met converted. Round your answer to the nearest cent. d. What is the premium in terms of stock that the investor pays when he or she purchases the convertible bond instead of the stock Round your answer to the nearest dollar What is the value of the common stock based on the market price of the bond? Use the given above number of shares into which the bond may be converted, Round your answer to the nearest cent. d. What is the premium in terms of stock that the investor pays when he or she purchases the convertible bond instead of the stock round your the nearest dollar e. Nonconvertible bonds are selling with a yield to maturity of 8 percent. If this bond lacked the conversion feature, what would the approximate price of the bond be? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar 1. What is the premium in terms of debt that the investor pays when he or she purchases the convertible bond instead of a nonconvertible bond Round you answer to the nearest dollar What is the probability that the corporation will call this bond? Since the price of the stock is-Salust than the exercise price of the band, the probability of the bond being called is select Interest Factors for the Present Value of One Dollar Period % % % % 6% 7. 12. 14% 15% 16 8 . 2 1990980971962952-94393592691790983-80002847833806281. - 980 961 93 925 907 BMW 31 57 242 96 En E 13 1A - P . | | 94 915899 E-10 864 5 1 12 E-FB-160955344 1961 92. 35521615TH ER359:57 527) 168b322171118 . 16 19_46 / 34) 12345 6789mmBBS EDBpw s g % % m 0428289 9046056630595 - 6-A2 A11 3 0318811 TENT- 5 327 21_8351 52 400 32 73317 971 7317 _6315E - 50040502 15: nal 3213056321 918 TEEN AM-DDE 44 16 :00 194 7 26 19 14 905 B2074466_51155B-DB63 117073191162 TDD | 896804 122 650 585 195162-15 1946 8716 57716BE01 91 ) LD 807SPEE| SJ505 Sh 16 .53 78 73 34 8 9 E ng" HE4022 19 F401 350 | FF abe -E 13 : 1 7 | 3626061767, EIES T TITLET | |-- | EU | 3 | B TE PER PE TE THE T 5 19 14 HI 25780 610 478 35 2013 -184 Mb 16 1936908_00 _16_010 005 007 - 30742552 412328 1 4 31 19965 % 33 mm- 1) Groul .00 - sal S ,,% w