You have purchased a convertible bond for $1,133.12. It is convertible into 34 shares of the firm's

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You have purchased a convertible bond for $1,133.12. It is convertible into 34 shares of the firm's common stock. The current stock price is $19.20 per share.

a. What is the market conversion value of the bond?

Market conversion value $

b. What is the conversion premium?

Conversion premium SC

c. Will you choose to convert the stock now?

Related Book For answer-question

Financial Markets and Institutions

ISBN: 978-0077861667

6th edition

Authors: Anthony Saunders , Marcia Cornett

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Posted Date: Mar 09, 2022 05:50 AM

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You have purchased a convertible bond for $1,133.12. It is convertible into 34 shares of the firm's

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