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ONLY ANSWER E,F,G 2. Consider the convertible bond by Miser Electronics: par value1, 000 market price of convertible bond- $900 estimated straight value of bond

ONLY ANSWER E,F,Gimage text in transcribed

2. Consider the convertible bond by Miser Electronics: par value1, 000 market price of convertible bond- $900 estimated straight value of bond $700 . coupon rate-8.5% . conversion ratio30 Assume that the price of Miser Electronics common stock is $25 and that the dividend per share is $1 per annum Calculate each of the following a. conversion valie b. market conversion price C. conversion premium per share d. conversion premium ratio e. premium over straight value f. yield advantage of bond g premium payback period

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