Plunkett Gym Equipment Inc has a $1,000 par value convertible bond outstanding that can be converted into 25 shares of common stock The common stock is currently selling for $34 75 a share, and the convertible bond is selling for $960 a What is the conversion value of the bond b What is the convers...

Plunkett Gym Equipment Inc a 3474 stock price 25 ...

Plunkett Gym Equipment Inc. has a $1,000 par value convertible bond outstanding that can be converted into

Question:

Plunkett Gym Equipment Inc. has a $1,000 convertible bond outstanding that can be converted into 25 shares of . The is currently selling for $34.75 a share, and the convertible bond is selling for $960.
a. What is the conversion value of the bond?
b. What is the conversion premium?
c. What is the conversion price? Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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,...