Question: Ashton Long, a bond analyst, is analyzing a convertible bond. The characteristics of the bond are given below. Convertible Bond Characteristics Par value Annual coupon

Ashton Long, a bond analyst, is analyzing a convertible bond. The characteristics of the bond are given below.
Convertible Bond Characteristics
Par value
Annual coupon rate (annual pay)
Conversion ratio
Market price
Straight value
$1,000
7.2%
25
105% of par
99% of par
Underlying Stock Characteristics
Current market price
$32 per share
Compute the bond's conversion value and conversion price using the current market value.
Conversion value
Conversion price
Ashton Long, a bond analyst, is analyzing a convertible bond. The

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