Question
Sedna Technologies 5% coupon convertible bond has a conversion price of $40 and a par value of $1,000. The current market price of the convertible
Sedna Technologies 5% coupon convertible bond has a conversion price of $40 and a par value of $1,000. The current market price of the convertible bond is $1,250 and Sedna's current stock price is $41.25. (1 point each)
a.What is the conversion value?
b.What is the conversion premium?
c.What is the parity share price?
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Basic Finance An Introduction To Financial Institutions, Investments, And Management
Authors: Herbert B. Mayo
12th Edition
1337691011, 978-1337691017
