Question
You purchased a convertible bond tree years ago. It has a 7.5% coupon rate, par value of $1,000, interest is paid semiannually, and the bond
You purchased a convertible bond tree years ago. It has a 7.5% coupon rate, par value of $1,000, interest is paid semiannually, and the bond matures in 6 years. If the firm stock currently trades at $41.50 per share, calculate conversion value (1 point):
$1286
$1000
$1328
$957
12. You purchased a convertible bond tree years ago. It has a 7.5% coupon rate, par value of $1,000, interest is paid semiannually, and the bond matures in 6 years. If the bond currently trades at $1,125 and firm stock currently trades at $41.50 per share, calculate conversion premium (1 point):
-15.3%
15.3%
12.5%
-7.5%
there is no extra information was given
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