Question
(TCO F) The following data applies to Saunders Corporation's convertible bond. Maturity: 10 Stock price: $30.00 Par value: $1,000.00 Conversion price: $35.00 Annual coupon: 5.00%
(TCO F) The following data applies to Saunders Corporation's convertible bond.
Maturity: 10
Stock price: $30.00
Par value: $1,000.00
Conversion price: $35.00
Annual coupon: 5.00%
Straight-debt yield: 8.00%
What is the bond's conversion value?
(a) $698.15
(b) $734.89
(c) $773.57
(d) $814.29
(e) $857.14
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Millon Cornett
9th edition
1259717771, 1259717772, 9781260048186, 1260048187, 978-1259717772
