Five years ago williams company issued 10 million of


Five years ago, the Williams Company issued $10 million of convertible bonds with a par value of $1,000 each and a coupon rate of 6%, and with each convertible into 20 shares. They will mature twenty years from now. The stock is now trading at $60 per share. The market interest rate is 8%.         

16. What is the conversion price?

17. What is the conversion value?

18. What is the conversion ratio?

19. What is the pure bond value?

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Financial Management: Five years ago williams company issued 10 million of
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