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Please provide step by step calculations to support the answer. Orient Airlines common stock currently sells for $25, and its 8 years maturity convertible bond
Please provide step by step calculations to support the answer.
Orient Airlines common stock currently sells for $25, and its 8 years maturity convertible bond with 10% annual coupon rate paid semi-annually has a yield to maturity of 8%. Each bond can be converted into 40 shares of common stock at any time before maturity. What is the conversion value of the bond and would bondholders convert their bond into stock todayStep by Step Solution
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