Question: Problem 18-20 Convertible Bonds (LO3, CFA5) Steven Long, a bond analyst, is analyzing a convertible bond. The characteristics of the bond are given below. Convertible

Problem 18-20 Convertible Bonds (LO3, CFA5) Steven Long, a bond analyst,

Problem 18-20 Convertible Bonds (LO3, CFA5) Steven 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 8.4% 28 123% of par 99% of par Underlying Stock Characteristics Current market price $38 per share Compute the bond's conversion value and conversion price. (Round your conversion price to 2 decimal places.) Conversion value Conversion price

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