Question: QUESTION 11 Jacques has a convertible bond with a par value of $1,000 that is trading in the market for $925. The bond is convertible

QUESTION 11 Jacques has a convertible bond with a par value of $1,000 that is trading in the market for $925. The bond is convertible into 50 shares of XYZ stock. The current market price of XYZ stock is 17.50 per share. What is the bond's conversion premium? O a. $0. b. $76 C. $50. d. $125. QUESTION 12 1 Eric is considering buying a bond with a $1,000 par value that has 16 semi-annual coupon payments remaining until the bond matures. The semi-annual interest payments are $15.00 and the annual discount rate is 6 percent. Assume that there are 180 days in the coupon period and that there are 120 days between the settlement date and the next coupon payment date. What price will Eric pay for the bond? a. The bid price plus $5. b. The bid price plus $10. O c. The ask price plus $5. d. The ask price plus $10

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