Steven Long, a bond analyst, is analyzing a convertible bond. The characteristics of the bond are given
Question:
Convertible Bond Characteristics
Par value ............................................... $1,000
Annual coupon rate (annual pay) .................... 7.2%
Conversion ratio ........................................... 25
Market price .................................... 105% of par
Straight value .................................... 99% of par
Underlying Stock Characteristics
Current market price ......................... $32 per share
Compute the bond's conversion value and conversion price.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Conversion va...View the full answer
Answered By
MUHAMMAD ZAHID
(TOTAL EXPERIENCE 6 YEARS AND 2 MONTHS)
Assistant Electrical Engineer at ZEETA for Electro Mechanical Services (UAE)
(From 22 dec-2017 to 21 dec-2019)
Job Responsibilities in all Projects (TAWAM HOSPITAL AL-AIN):
? Certified from Al-Ain Distribution Company(AADC UAE)
? Detail study of Al-Ain Distribution Company Electrical installation regulation
? Expertise in load and current calculations
? Calculations and Drawings of single line Diagrams
? Installation of FIRE ALARAM SYSTEM
? Expertise in load and phase Distribution
? Calculation of voltage drop in cables while selection of cables for specific load
? Distribution Boards designing and phase distribution
? Expertise in cable and breaker selection for specific load
? Shop drawings
? To manage all Electrical activities, and execution through sub-contractors
? To correspond with clients
? Preparation of Work Schedule
Site Engineer at RIAZ and SONS under US Aid projects from OCT 2013 to April 2016
Installation and maintenance of 160 KVA APC UPS
Installation of APC Racks
Maintenance and trouble shooting of battery banks, PDM, PDU and industrial sockets
Installation of ATS panels having Circuit brakers, Relays and magnetic contractors
Maintenance and trouble shooting of 100 kva GEN-set installed
WAPDA Engineering Academy Faisalabad (1 Year educational training) From AUG.2011 to AUG.2012
Work on following Simulators:
? Analog Simulator
? Gas turbine power plant Simulator
? Steam power plant simulator
? High Voltage simulator
? Transmission & distribution Simulator
Systems:
? Main Power Distribution System from Grid Station
? Main LT & HT Panel
? Generators Set with ATS Panel.
0 Reviews
10+ Question Solved
Related Book For 
Fundamentals of Investments Valuation and Management
ISBN: 978-0078115660
7th edition
Authors: Bradford Jordan, Thomas Miller
Question Posted:
