Question 6 (6 points)

Dubai Properties plc has in issue 5% convertible debt with 8 years to redemption (at par or by converting 1,000 to 9 shares). The bond can only be converted at maturity. The bonds are trading at a yield of 6.7%. Dubai Properties' shares are currently trading at 83.20 and are expected to increase in value by 6% a year over the next 8 years. The bond has just paid a coupon and there is no accrued interest to account for. The lowest value the bond can have today today is:

Question 6 options:

	897.30
	975.20
	902.1
	1012.46
	1109.32