Question
Ashton Long, a bond analyst, is analyzing a convertible bond. The characteristics of the bond are given below. Convertible Bond Characteristics Par value$1,000 Annual coupon
Ashton Long, a bond analyst, is analyzing a convertible bond. The characteristics of the bond are given below.
Convertible Bond Characteristics
Par value$1,000
Annual coupon rate (annual pay)6.3%
Conversion ratio29
Market price118% of par
Straight value99% of par
Underlying Stock Characteristics
Current market price$31per share
Compute the bond's conversion value and conversion price.(Round your conversion price to 2 decimal places.)
Conversion Value:
Conversion Price:
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Using Microsoft Excel and Access 2016 for Accounting
Authors: Glenn Owen
5th edition
1337109048, 1337109045, 1337342149, 9781337342148 , 978-1337109048
