XYZ Corporation has issued convertible bonds with a par value of $10,000 each. The bonds have a
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XYZ Corporation has issued convertible bonds with a par value of $10,000 each. The bonds have a coupon rate of 5% and a conversion ratio of 20 shares per bond. The market price of the company's common shares is $50 per share. Calculate the initial carrying value of the convertible bonds.
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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