Finding the conversion value of the bond


Problem:

O'reilly Moving Company has a $1,000 par value convertible bond outstanding that can be converted into 25 shares of common stock. The common stock is currently selling for $36.25 a share, and the convertible bond is selling for $970.

Required:

Question 1: What is the conversion value of the bond

Question 2: What is the conversion premium?

Question 3: What is the conversion price?

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Accounting Basics: Finding the conversion value of the bond
Reference No:- TGS0890155

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