Sun Corporation has a convertible bond with face value of $1,000, coupon rate of 6%, and with

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Sun Corporation has a convertible bond with face value of $1,000, coupon rate of 6%, and with annual payments for 5 years. The bond can be converted into 25 shares of common equity (currently trading at $45 per share).What will be the best option for the investor-to convert the bonds or to sell them? The market rate is 7%.

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Financial Markets And Institutions

ISBN: 9781292215006

9th Global Edition

Authors: Stanley Eakins Frederic Mishkin

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