The current market price of a bond is $105 prr $100 nominal value. the coupon rate on the debt is 6% and the debt can be redeemed at par in 3 years time. alternnatively the debt can be converted into 10 shares per $100 bond. the currnet market price of the share is $7.50 and share price is expected to increase 8% per annum. what is the redemption value of the bond? show your work.

Answer rating: 100% (QA)

First lets calculate the annual coupon payment on the bondCoupon payment Nominal value x Coupon rate... View the full answer