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Question 10 5 pts Consider the following information about a convertible bond. Straight Bond Information o Face Value: $1,000 Stock o Annual Coupon: $100 o
Question 10 5 pts Consider the following information about a convertible bond. Straight Bond Information o Face Value: $1,000 Stock o Annual Coupon: $100 o Maturity Date: 5 years o Discount Rate: 12% Stock Information o Price: $30 per share o Standard dev.: 50% o Conversion Price: $50 Calculate the approximate fair market price for this bond using Black-Scholes Option Pricing Model). Question 10 5 pts Consider the following information about a convertible bond. Straight Bond Information o Face Value: $1,000 Stock o Annual Coupon: $100 o Maturity Date: 5 years o Discount Rate: 12% Stock Information o Price: $30 per share o Standard dev.: 50% o Conversion Price: $50 Calculate the approximate fair market price for this bond using Black-Scholes Option Pricing Model)
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