You own a convertible bond of which has a coupon rate of 5%, a yield of 6%,

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You own a convertible bond of which has a coupon rate of 5%, a yield of 6%, and pays annually.It is 4 years from maturity and the conversion rate is 20.24.What is the minimum stock price for you to convert?

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CFIN

ISBN: 978-1305666870

5th edition

Authors: Scott Besley, Eugene Brigham

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Posted Date: May 10, 2024 04:24 AM

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You own a convertible bond of which has a coupon rate of 5%, a yield of 6%,

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The minimum stock price for you to convert the bond happens at the breakeven point where the annual ... View the full answer

CFIN

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