Question: Looking for answer to question F. A certain 5% annual coupon rate convertible bond (maturing in 20 ye s convert e at the holders on
A certain 5% annual coupon rate convertible bond (maturing in 20 ye s convert e at the holders on into 17 shares of common stock. The bonds ars trading at $790. The stock (which pays 746 a share in annual dividends) is currently priced in the market at $32 27 a share. a. What is the bonds conversion price? b. What is its conversion ratio? c. What is the conversion value of this issue? What is its conversion parity? d. What is the conversion premium, in dollars and as a percentage e. What is the bond's payback period? t. If comparably rated, nonconvertible bonds sell to yield 7%, what is the investment value of the convertible? a. The bond's conversion price io (464 (Round to the nearest cent) b. The conversion ratio is 17 shares (Round to the nearest integer) C. The conversion value of this issue is 4859, (Rourd to the nearest cent) The conversion parily of this issue io $ 4647 (Round to the nearest cent d. The conversion premium in dollars ibs $241 41 (Round to the nearest cent) bar The conversion premurn as a percentage is[4401% (Round to two decinal places) e. The bonds payback perlod is (645 years (Round to one decimal place) . The investment value of the convertible is s(Round to the nearest cent) Enter your answer in each of the answer boxes HIT A certain 5% annual coupon rate convertible bond (maturing in 20 ye s convert e at the holders on into 17 shares of common stock. The bonds ars trading at $790. The stock (which pays 746 a share in annual dividends) is currently priced in the market at $32 27 a share. a. What is the bonds conversion price? b. What is its conversion ratio? c. What is the conversion value of this issue? What is its conversion parity? d. What is the conversion premium, in dollars and as a percentage e. What is the bond's payback period? t. If comparably rated, nonconvertible bonds sell to yield 7%, what is the investment value of the convertible? a. The bond's conversion price io (464 (Round to the nearest cent) b. The conversion ratio is 17 shares (Round to the nearest integer) C. The conversion value of this issue is 4859, (Rourd to the nearest cent) The conversion parily of this issue io $ 4647 (Round to the nearest cent d. The conversion premium in dollars ibs $241 41 (Round to the nearest cent) bar The conversion premurn as a percentage is[4401% (Round to two decinal places) e. The bonds payback perlod is (645 years (Round to one decimal place) . The investment value of the convertible is s(Round to the nearest cent) Enter your answer in each of the answer boxes HIT
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