Consider the following convertible bond: Maturity = 10 years Coupon rate = 7% Conversion ratio = 50
Question:
Consider the following convertible bond:
Maturity = 10 years Coupon rate = 7%
Conversion ratio = 50 Maturity value = 1,000 Moreover, the following information has been gathered about the bond and the common stock: Bond price = 950 Stock price = 17 Annual dividend per share = 1
Compute the following:
a. Market conversion price
b. Parity price
c. Premium points
d. Percent premium
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Related Book For
Introduction To Fixed Income Analytics
ISBN: 9780470572139
2nd Edition
Authors: Steven V. Mann, Frank J. Fabozzi
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