Question
Assume that Almond Milk Company has a $1,000 face value bond with a stated coupon rate of 8.75 percent that is convertible into its common
Assume that Almond Milk Company has a $1,000 face value bond with a stated coupon rate of 8.75 percent that is convertible into its common stock at $35.19. The bond is selling at $1,030.33 in the market. The common stock is selling for $33.40 and pays a dividend of 0.60 per share. Calculate the conversion premium:
Please calculate the final answer to two decimal places in percentage form.
Please write the % sign in the units box.
Your Answer:
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Fundamentals Of Multinational Finance
Authors: Michael Moffett
6th Global Edition
1292215216, 978-1292215211
