Question: A 5 - year convertible bond with a coupon rate 6 % can be converted into 2 0 shares of common stock. This bond has

A 5-year convertible bond with a coupon rate 6% can be converted into 20 shares of common stock.
This bond has a yield of 7%. Its current stock price is $40 per share and it is expected to grow at 5% per
year. Approximately when will the bondholders on this convertible bond will convert this bond into 20
shares of common stocks? Please support your answers with calculations. (6 points)
A 5-year convertible bond with a coupon rate 6% can be

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