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Convertible bond. Mercury Tech has a convertible bond outstanding, trading in the marketplace at $ 8 3 5 . The par value is $ 1
Convertible bond.
Mercury Tech has a convertible bond outstanding, trading in the marketplace at $ The par value is $ the
coupon rate is percent, and the bond matures in years. The conversion price is and the company's common
stock is selling for per share. Interest is paid annually. Assume interest rates in the market yield to maturity are
percent.
a What is the conversion value?
$
Round your answer to the nearest cent
b What is the pure bond component of this convertible bond?
$
Round your answer to the nearest cent USE EXCEL AND SHOW FORMULA
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