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
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) 8.2 % Conversion ratio 28 Market price 115 % of par Straight value 99 % of par Underlying Stock Characteristics Current market price $ 30 per share Compute the bonds conversion value and conversion price.
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Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen
13th Edition
0073382388, 978-0073382388
