Tonka Inc just issued a zero coupon convertible bond due in 5 years The conversion ratio is 30 shares Each convertible bond is trading at $810 in the market The interest rate for straight debt is 5 and the current share price is $25 a What is the straight bond value (assume par value of $1,000) b ...

a The straight bond value is the present value of the face value of the bond discounted at the yield to maturity Since the bond is a zero coupon bond ...

Tonka Inc. just issued a zero coupon convertible bond due in 5 years. The conversion ratio...

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Tonka Inc. just issued a zero coupon convertible bond due in 5 years. The conversion ratio...

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a The straight bond value is the present value of the face value of the bond discounted at the yield to maturity Since the bond is a zero coupon bond ... View the full answer

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