Question: Campbell, Incorporated, has a $ 1 , 0 0 0 face value convertible bond issue that is currently selling in the market for $ 8
Campbell, Incorporated, has a $ face value convertible bond issue that is currently selling in the market for $ Each bond is exchangeable at any time for shares of the companys stock. The convertible bond has a percent coupon, payable semiannually. Similar nonconvertible bonds are priced to yield percent. The bond matures in years. Stock in the company sells for $ per share. a What is the conversion ratio?aWhat is the conversion price? aWhat is the conversion premium? bWhat is the straight bond value? bWhat is the conversion value? cWhat would the stock price have to be for the conversion value and the straight bond value to be equal? dWhat is the option value of the bond?
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