Question: 202: MT-15 - MISC E P6 On December 31, 20x9, Gable Corporation reported outstanding, convertible bonds. (1 pt) On January 1, 2010 bondholders presented the

202: MT-15 - MISC

E
P6

On December 31, 20x9, Gable Corporation reported outstanding, convertible bonds.

(1 pt)

On January 1, 2010 bondholders presented the following amount for conversion:

AMOUNT PRESENTED $

$ 400,000

Each $1,000 bond is convertible into:

TOT O/S $

$ 600,000 # SH 25

TOT UNAMORT DISC $

$ 48,000 PV 30
3 PERIODS 6 PERIODS
PV, $1 PV, ANN PV, $1 PV, ANN
4% 0.88900 2.77509 4% 0.79031 5.24214
5% 0.86384 2.72325 5% 0.74622 5.07569
6% 0.83962 2.67301 6% 0.70496 4.91732
8% 0.79383 2.5771 8% 0.63017 4.62288
9% 0.77218 2.5313 9% 0.59627 4.48592
10% 0.75132 2.48685 10% 0.56447 4.35526
11% 0.73119 2.44371 11% 0.53464 4.23054
12% 0.71178 2.40183 12% 0.50663 4.11141
15% 0.65752 2.28323 15% 0.43233 3.78448
P7

Find the PV of a B/P paid semi-anually. The B/P matures in 3 years.

(1 pt)
FACE $ 500,000 FACE % 12% MKT % 10%
P8

Find the PV of a B/P paid semi-anually. The B/P matures in 3 years.

(1 pt)
FACE $ 800,000 FACE % 8% MKT % 12%

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