1. The 11% convertible debt of Grey plc is convertible in four years’ time at a rate of 25 shares per bond, or redeemable in four years’ time at its par value of £100. The current ordinary share price of Grey plc is £3.50 and this is expected to grow by 5% per year. If Grey plc has a cost of debt of 8%, what is the current ex interest market price of its convertible debt? 

   
   

Answer rating: 100% (QA)

To determine the current exinterest market price of Grey plcs convertible debt we need to calculate ... View the full answer