Question
Plunkett Gym Equipment Inc. has a $1,000 par value convertible bond outstanding that can be converted into 55 shares of common stock. The common stock
Plunkett Gym Equipment Inc. has a $1,000 par value convertible bond outstanding that can be converted into 55 shares of common stock. The common stock is currently selling for $35.50 a share, and the convertible bond is selling for $2,005.80.
What is the conversion value of the bond?
What is the conversion premium?
What is the conversion price?
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Hotel Finance
Authors: Anand Iyengar
1st Edition
0195694465, 978-0195694468
