1 a convertible bond has the following, Ask an Expert

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1) A convertible bond has the following features:

Coupon	7.25%
Maturity	June 15, 2020
Market price of bond	$83.00
Market price of underlying common stock	$38.00
Annual dividend	$1.20
Conversion ratio	18.50 shares

Calculate the conversion premium for this bond.

2) Find the duration of a 6% coupon bond making annual coupon payments if it has two years until maturity and a yield to maturity of 7%.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92740588

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