Question
You own a convertible bond with 2.5 years left to maturity.It pays semiannually, has a 5% yield and 5.5% coupon rate.The conversion ratio is 40.The
You own a convertible bond with 2.5 years left to maturity.It pays semiannually, has a 5% yield and 5.5% coupon rate.The conversion ratio is 40.The current stock price is 26.22.How much will you make if you converted your bond to stock?
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Managerial Accounting Decision Making and Performance Management
Authors: Ray Proctor
4th edition
273764489, 978-0273764489
