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Steven Long, a bond analyst, is analyzing a convertible bond. The characteristics of the bond are given below. Convertible Bond Characteristics Par value $ 1,000
| Steven Long, a bond analyst, is analyzing a convertible bond. The characteristics of the bond are given below. |
| Convertible Bond Characteristics | |||
| Par value | $ | 1,000 | |
| Annual coupon rate (annual pay) | 5.2 | % | |
| Conversion ratio | 27 | ||
| Market price | 116 | % of par | |
| Straight value | 99 | % of par | |
| Underlying Stock Characteristics | |||
| Current market price | $ | 28 | per share |
| Compute the bonds conversion value and market conversion price. (Round your conversion price to 2 decimal places. Omit the "$" sign in your response.) |
| Conversion value | $ |
| Conversion price | $ |
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Financial Management Principles And Practices
Authors: Timothy J. Gallagher
9th Edition
1954156103, 978-1954156104
