Suppose a firm has 20 shares of equity and a 10 year zero coupon convertible bond with a maturity value of $200, convertible into 8 shares What is the value of the debt, the share price, and the price of the warrant ...

By putcall parity the nonwarrant component ...

Suppose a firm has 20 shares of equity and a 10-year zero-coupon convertible bond with a maturity

Question:

Suppose a firm has 20 shares of equity and a 10-year zero-coupon convertible bond with a value of $200, convertible into 8 shares. What is the value of the debt, the share price, and the price of the warrant? Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...