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) | 6.2 | % | |
| Conversion ratio | 27 | ||
| Market price | 114 | % of par | |
| Straight value | 99 | % of par | |
| Underlying Stock Characteristics | |||
| Current market price | $ | 35 | per share |
Compute the bonds conversion value and conversion price. (Round your conversion price to 2 decimal places.)
Conversion Value:
Conversion Price:
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Personal Finance An Integrated Approach
Authors: Bernard J. Winger
4th Edition
0198520972, 9780132696302
