A convertible bond has a face value of $1,000, and the conversion price is $50 per share.
Question:
a. What is the conversion ratio?
b. What is the conversion value?
c. What is the conversion premium (in dollars and percent)?
d. What is the floor value or pure bond value? Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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a Conversion ratio Face value 100050 20 Conversion price b Conversion valueConver...View the full answer
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Related Book For 
Fundamentals of Investment Management
ISBN: 978-0078034626
10th edition
Authors: Geoffrey Hirt, Stanley Block
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