Question
Assume you just paid $1,262 for a convertible bond that carries a(n) 9.04% coupon and has 15 years to maturity. The bond can be converted
Assume you just paid $1,262 for a convertible bond that carries a(n) 9.04% coupon and has 15 years to maturity. The bond can be converted into 24 shares of stock, which are now trading at $50 a share. Find the bond investment value of this issue, given that comparable nonconvertible bonds are currently selling to yield 12.63%.
The bond investment value of this issue is $
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
21st Edition
1634602048, 978-1634602044
