MDX company issued a convertible and callable bond with the  features: the bond was issued with a coupon of 5% (paid annually).Yield to maturity of 5%, face value of $1000, and maturity of 10 years. GoldSax analyst estimated the bond's conversion value to be $ 150, and the callable value to be $50. 

What Is the price of the bond?

Answer rating: 100% (QA)

To calculate the price of the bond we need to consider the present value of both the bonds coupon pa... View the full answer