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You have been hired to value a new 2 5 - year, callable, convertible bond. The bond has a 7 . 1 0 percent coupon
You have been hired to value a new year, callable, convertible bond. The bond has a percent coupon rate, payable annually. The conversion price is $ and the stock currently sells for $ The stock price is expected to grow at percent per year. The bond is callable at $ but based on prior experience, it wont be called unless the conversion value is $ The required return on this bond is percent. What value would you assign to this bond? Do not round intermediate calculations. Round the final answer to decimal places. Omit $ sign in your response.
Bond value
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