Question: Provide explanation Oldham plc has in issue a convertible bond with a coupon rate of 10 per cent. Each 100 nominal bond is convertible into

Provide explanation Provide explanation Oldham plc has in issue a convertible bond with a

Oldham plc has in issue a convertible bond with a coupon rate of 10 per cent. Each 100 nominal bond is convertible into 20 ordinary shares. The market price of the convertible bond is 108, while the current ordinary share price is 480p. Calculate (i) the conversion premium and (ii) the conversion value

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