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 straight debt value?
A. $698.05
B. $1000
C. $664.50
D. $798.70
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
23rd Edition
1647084105, 978-1647084103
