Question: Compute the bonds conversion value and market conversionprice. Convertible Bond Characteristics $1,000 Par value Annual coupon rate (annual pay) Conversion ratio Market price Stralght value

Compute the bond€™s conversion value and market conversionprice.

Convertible Bond Characteristics $1,000 Par value Annual coupon rate (annual pay) Conversion ratio Market price Stralght value 6.5% 105% of par 99% of par Underlying Stock Characteristics Current market price Annual cash dividend $40 per share 51.20 per share

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