Question
The following facts apply to a convertible bond making semiannual payments: Conversion price $ 57 /share Coupon rate 8.5% Par value $ 1,000 Yield on
The following facts apply to a convertible bond making semiannual payments: Conversion price $ 57 /share Coupon rate 8.5% Par value $ 1,000 Yield on nonconvertible debentures of same quality 11% Maturity 10 years Market price of stock $ 56 /share What is the minimum price at which the convertible should sell?
Multiple Choice
$962.81
$1,000.00
$982.46
$943.16
$850.62
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Foundations In Personal Finance
Authors: Dave Ramsey
3rd Edition
1936948524, 978-1936948529
