Question
[i]. (10 points) A convertible bond has the following features: Coupon 5.25% Maturity June 15, 2020 Market price of bond $90.50 Market price of underlying
[i]. (10 points)
A convertible bond has the following features:
| Coupon | 5.25% |
| Maturity | June 15, 2020 |
| Market price of bond | $90.50 |
| Market price of underlying common stock | $25.00 |
| Annual dividend | $1.20 |
| Conversion ratio | 19.83 shares |
Calculate the conversion premium for this bond.
[i]
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Handbook Of Anti Money Laundering
Authors: Dennis Cox
1st Edition
0470065745, 978-0470065747
