Question
The following data refers to a company's issue of convertible bonds: Maturity: 10 years Stock price: $30.00 Par value: $1,000.00 Conversion price: $35.00 Annual coupon:
The following data refers to a company's issue of convertible bonds: Maturity: 10 years 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 at t=0, assuming no growth?
A. 1079.95
B. 857.10
C. $999.95
D. $925.67
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
978-0133866292
