Debt Company has $100 million in outstanding convertible bonds with a 2.00% coupon rate, a conversion price

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Debt Company has $100 million in outstanding convertible bonds with a 2.00% coupon rate, a conversion price of $16.00 and a conversion ratio of 62.5. Each bond has a face value of $1,000.

What is the market conversion value of each bond if Debt Company's stock price is $18.50 per share?

Related Book For answer-question

Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: Apr 27, 2023 11:51 PM

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Debt Company has $100 million in outstanding convertible bonds with a 2.00% coupon rate, a conversion price

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SOLUTION Market Conversion Value Current Stock Price Conversion Ratio Market Conversion Value 1850 6... View the full answer

Principles of Finance

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