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Please answer the Excel questions attached. 0.19 You plan to invest 11,000 (Euro) and are considering a convertible bond issued by France Telecom SA with
Please answer the Excel questions attached.
0.19 You plan to invest 11,000 (Euro) and are considering a convertible bond issued by France Telecom SA with a par value of 1,000 and convertible into Orange SA shares with a conversion ratio of 20 . This convertible bond pays a coupon of 2.5% and sells at a price of 1,100 (which includes a 15% conversion premium). How much total income (coupon plus capital gains) will this investment offer if, over the course of the next 12 months, the price of the stock moves to 80 per share and the convertible trades at a price that includes a conversion premium of 5% ? What is the holding period return on this investment? Finally, calculate the current price of the underlying Orange SA common stock. \begin{tabular}{|l|} \hline end of year conversion value \\ \hline \\ \hline end of year price of each convertible bond \\ interest income on all 5 bonds \\ \hline capital gains on all 5 bonds \\ \hline total income on all 5 bonds \\ \hline holding period return \\ \hline \\ \hline current conversion value \\ \hline current selling price of common stock \\ \hline \end{tabular}Step by Step Solution
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