A 1000 par value convertible bond has a conversion price of, Ask an Expert

Management Studies

A $1000 par value convertible bond has a conversion price of $50. It is currently selling for $1,120 despite the fact that the bond’s coupon rate and the market rate are equal. The common stock obtained upon conversion is selling for $54 per share. What is the convertible bond’s conversion premium?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91413070

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