A convertible bond has a 65 percent coupon paid, Ask an Expert

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A convertible bond has a 6.5 percent coupon, paid semiannually, and will mature in 12 years. If the bond were not convertible, it would be priced to yield 5.5 percent. The conversion ratio on the bond is 15 and the stock is currently selling for $42 per share. What is the minimum value of this bond?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91789074

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