Questions 14 A company issued convertible bonds with a face value of $ 1,000. Each bond is exchangeable at any time for 25 common shares of the company. It offers a semi-annual coupon rate of 4% and coupons are paid semi-annually. The required rate of return is 5% per semester. The bond has a 10-year maturity. The common stock sells for $ 38. Calculate the standard value of this bond.

Options

$ 1,100 $ 934.75326 $ 1,000 $ 875.37789 $ 965.45125