A convertible bond has a face value of 1000 and the


Question: A convertible bond has a face value of $1,000 and the conversion price is $35 per share. The stock is selling at $30 per share. The bond pays $75 per year in interest and is selling in the market for $925. It matures in 7 years. Market rates are 10% annualy. What is the conversion ratio? What is the conversion value?

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Finance Basics: A convertible bond has a face value of 1000 and the
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