The price of Haltom Corporation 5 2019 convertible bonds is $1,380. For the Williams Corporation, the 6

Question:

The price of Haltom 5¼ 2019 convertible bonds is $1,380. For the Williams the 6⅛ 2018 convertible bonds are selling at $725.
a. Explain what factors might cause their prices to be different from their of $1,000.
b. What will happen to each bond’s value if long-term interest rates decline?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...