Question: Question Help Determining values Convertible bond Eastern Clock Company has an outstanding issue of convertible bonds with a $1.000 par value. These bonds are convertible

Question Help Determining values Convertible bond Eastern Clock Company has an outstanding issue of convertible bonds with a $1.000 par value. These bonds are convertible into 40 shares of common stock They have a 8% annual coupon interest rate and a 23-year maturity. The interest rate on a straight bond of similar skis currently 15% a. Calculate the straight bond value of the bond b. Calculate the conversion for stock) value of the bond when the market price of the common stock is $15 per share c. What is the least you would expect the bond to sell for, regardless of the common stock price behavior? a. The straight value of the bond is s (Round to the nearest cent)

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