Question
DIY issues a convertible bond with face value of $1,000. The market price of the bond is$1,002 and holders can exchange the bond for 29.0
DIY issues a convertible bond with face value of $1,000. The market price of the bond is$1,002 and holders can exchange the bond for 29.0 shares of DIY stock. If the stock is selling for $26.0, what is the conversion premium?
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
