Question: A certain 6% annual coupon rate convertible bond ($1,000 par value, maturing in 20 years) is convertible at the holder's option into 20 shares of

A certain 6% annual coupon rate convertible bond ($1,000 par value,maturing in 20 years) is convertible at the holder's option into 20

A certain 6% annual coupon rate convertible bond ($1,000 par value, maturing in 20 years) is convertible at the holder's option into 20 shares of common stock. The bond is currently trading at $800. The stock (which pays 69 a share in annual dividends) is currently priced in the market at $30.09 a share. e. What is the bond's payback period? f. If comparably rated, nonconvertible bonds sell to yield 8%, what is the investment value of the convertible? A certain 6% annual coupon rate convertible bond ($1,000 par value, maturing in 20 years) is convertible at the holder's option into 20 shares of common stock. The bond is currently trading at $800. The stock (which pays 69 a share in annual dividends) is currently priced in the market at $30.09 a share. e. What is the bond's payback period? f. If comparably rated, nonconvertible bonds sell to yield 8%, what is the investment value of the convertible

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