1) What is the accurate price for the stock? Is it liquidation value, book value or is it listed market price at given moment of time? Would you value the privately-owned company where there is no "listed market price" in a different way than the publicly owned company where there is listed market price available?
Is there a difference between "price" and "value"? Describe how would you define these terms?
Requirements
Level of Detail: Only answer needed
Other Requirements: answer it in brief, about 250-300 words.
2) A $1000 party value convertible bond has the conversion price of $ 50. It is at present selling for $ 1,120 despite the fact that bond's coupon rate and market rate are equivalent. Common stock got upon conversion is selling for $ 54 per share. Compute convertible bonds conversion premium.