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solve it with tabulated factors on paper do not use excel ! An investor pays $30,000 for a convertible bond (one that can be converted
solve it with tabulated factors on paper do not use excel !
An investor pays $30,000 for a convertible bond (one that can be converted into shares of corporate common stock). The bond conversion rate is 100 shares of stock anytime within the next five years. What will the stock price have to be in year 3 in order for the investor to make 10% per year on the investment? Assume the bond interest rate is 4% per year payable annuallyStep by Step Solution
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