A convertible bond has a face value of 1000 and the, Ask an Expert

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A convertible bond has a face value of $1,000 and the conversion price is $40 per share. The stock is selling at $30 per share. The bond pays $65 per year in interest and is selling in the market for $950. It matures in 7 years. Market rates are 10% annually. (I) What is the conversion ratio? (II) What is the conversion value?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92700998

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