Question
Barbour Inc has issued a convertible bond that is making semiannual payments and has the following characteristics: Conversion price $49/share Coupon rate 5% Par value
| Barbour Inc has issued a convertible bond that is making semiannual payments and has the following characteristics: |
| Conversion price | $49/share |
| Coupon rate | 5% |
| Par value | $1,000 |
| Yield on nonconvertible debentures of same quality | 7.5% |
| Maturity | 20 years |
| Market price of stock | $41 /share |
| What is the minimum price at which the convertible should sell? |
Multiple Choice
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$1,000.00
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$820.00
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$803.27
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$743.11
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$836.73
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Trading Strategies For Capital Markets
Authors: Joseph Benning
1st Edition
0071726233
