Question: EQM Corp. issues convertible bonds with a US$ 1,000 par value per bond that is 5 years to maturity and has a 4% coupon (annual

EQM Corp. issues convertible bonds with a US$ 1,000 par value per bond that is 5 years to maturity and has a 4% coupon (annual pay) at a 4% yield. The conversion ratio is 40 (per bond). The common equity shares do not receive dividends, a policy which is not likely to change.

What is the conversion price of the stock?

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