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A 13-year maturity convertible bond with a face value of $1,000 and a 8% coupon on a company with a bond rating of aaa is selling for $1,090. the bond pays interest annually. each bond can be exchange
A 13-year maturity convertible bond with a face value of $1,000 and a 8% coupon on a company with a bond rating of aaa is selling for $1,090. the bond pays interest annually. each bond can be exchanged for 20 shares, and the stock price currently is $50 per share. other aaa-rated bonds with the same maturity would sell at a yield to maturity of 10%. what is the value of the bondholders' call option?