Question
Apple company issues convertible bonds with a coupon rate of 5%. The par value is $1800 and the bond matures in 10 years. The current
Apple company issues convertible bonds with a coupon rate of 5%. The par value is $1800 and the bond matures in 10 years. The current stock price of the company is $68 and the conversion price is $62. The yield of a straight-debt is 12%. Calculate the bond's conversion value.
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, William J. Kretlow
11th Edition
0324653506, 978-0324653502
