Question
DNA Labs, Inc., has a $1,000 convertible bond outstanding that can be converted into 46 shares of common stock. The common stock is currently selling
DNA Labs, Inc., has a $1,000 convertible bond outstanding that can be converted into 46 shares of common stock. The common stock is currently selling for $27.80 a share, and the convertible bond is selling for $1,327.30
| (a) | What is the conversion value of the bond? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
| Conversion value | $ |
| (b) | What is the conversion premium? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
| Conversion premium | $ |
| (c) | What is the conversion price? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
| Conversion price | $ |
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Python For Finance
Authors: Yves Hilpisch
2nd Edition
1492024333, 978-1492024330
