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QUESTION
A bond with a coupon paying $65 per year has a conversion exercise price of $45 and par value of $1000. Current yields on similar investments are...
A bond with a coupon paying $65 per year has a conversion exercise price of $45 and par value of $1000. Current yields on similar investments are returning 7.85%. There are tens years to maturity, and the price of the underlying stock is priced at $43 in the market. What is the current price of the bond? What is the conversion value of the bond? and what is the difference between the two, and if any exists, what will occur? use 22 shares conversion ratio to figure it out.
A bond with a coupon paying $65 per year has a conversion exercise price of $45 and par value of $1000. Current yields on similar investments are returning 7.85%. There are tens years to maturity,...