A convertible bond is selling for 900 it has 10 years to


A convertible bond is selling for $900. It has 10 years to maturity, a $1000 face value, and a 10% coupon paid semi-annually. Similar non convertible bonds are priced to yield 12%. The conversion ration is 40. The stock currently sells for $21.75 per share. Calculate the convert ale bond's option value.

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Financial Management: A convertible bond is selling for 900 it has 10 years to
Reference No:- TGS01039445

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