Company X issues a convertible bond of L500,000.00, with an annual rate of 15%; the bond has

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Company "X" issues a convertible bond of L500,000.00, with an annual rate of 15%; the bond has a clause for the conversion of shares of 500 to a value of L1,000.00. By month 3, the shares rise to a value of L2,000.00.

Given the above valuations, would you cash in the bond or convert it into shares? explain.

Posted Date: Jun 21, 2024 10:02 PM

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Company X issues a convertible bond of L500,000.00, with an annual rate of 15%; the bond has

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