Question
Claypot Ceramics Company has a $1,000 par value convertible bond outstanding that can be converted into 30 shares of common stock. The common stock is
Claypot Ceramics Company has a $1,000 par value convertible bond outstanding that can be converted into 30 shares of common stock. The common stock is currently selling for $43.70 a share, and the convertible bond is selling for $1,350.(Round the final answers to 2 decimal places.)
a.What is the conversion value of the bond?
Conversion value$
b.What is the conversion premium?
Conversion premium$
c.What is the conversion price?
Conversion price$
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
11th edition
134141083, 978-0134141084
