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Question: The price of Haltom Corporation 5¼ 2019 convertible bonds is $1,380. For the Williams Corporation, the 61 /8 2018 convertible bonds are selling at $725.

a. Explain what factors might cause their prices to be different from their par values of $1,000.

b. What will happen to each bond's value if long-term interest rates decline?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92601171

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