lynd corporation common stock currently sells for $25, and its 8 year maturity convertible bond with 3%
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lynd corporation common stock currently sells for $25, and its 8 year maturity convertible bond with 3% annual coupon rate paid semiannually has a yield to maturity of 4%. each bond can be converted into 35 shares of common stock at any time before its maturity. the common stock is expected to grow by 5% every year. what is the conversion value of the bond and will bondholders convert their bond into common stock in 2 years from now?
Related Book For
Bank Management and Financial Services
ISBN: 978-0078034671
9th edition
Authors: Peter Rose, Sylvia Hudgins
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