Question: 6. A certain 6% annual pay convertible bonds maturing in 20years is convertible at the holders option into 20 shares of common stock. The bond

6. A certain 6% annual pay convertible bonds maturing in 20years is convertible at the holders option into 20 shares of common stock. The bond is currently trading at Ghs800. The stock which pays 75 pesewas a share in annual dividend is currently priced in the market at Ghs35 a share. i. What is the bonds conversion price? ii. What is the bonds conversion ratio? iii. What is the conversion value of the issue? What is its conversion parity? iv. What is the conversion premium in dollars and as a percentage? v. What is the payback period? vi. If comparably rated nonconvertible bonds sell to yield 8%, what is the investment value of the convertible

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