Use the following information for problems 14 thru 16. The following facts are available about a convertible
Question:
Use the following information for problems 14 thru 16. The following facts are available about a convertible bond: Face Value = $1,000; Issue Price = $975; Conversion Ratio = 50; Current Market Share Price = $17.50. What is the conversion price of this bond?
a. $10
b. $20
c. $40
d. $50
Use the following information for problems 14 thru 16. The following facts are available about a convertible bond: Face Value = $1,000; Issue Price = $975; Conversion Ratio = 50; Current Market Share Price = $17.50.
What is the bond s parity?
a. $875 | ||
b. $975 | ||
c. $1,000 | ||
d. $1,750 |
Use the following information for problems 14 thru 16. The following facts are available about a convertible bond: Face Value = $1,000; Issue Price = $975; Conversion Ratio = 50; Current Market Share Price = $17.50.
What is the bond s premium?
a. $100 | ||
b. $875 | ||
c. $975 | ||
d. $1,000 |
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella