Hilton common stock is trading on the nyse at 2405 per


Hilton Hotels Corp. has a convertible bond issue outstanding. Each bond, with a face value of $1,500, can be converted into common shares at a rate of 61.3003 shares of stock per $1,500 face value bond (the conversion rate), or $24.4697 per share. Hilton common stock is trading (on the NYSE) at $24.05 per share and the bonds are trading at $1,475.

Calculate the conversion value of each bond

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Finance Basics: Hilton common stock is trading on the nyse at 2405 per
Reference No:- TGS0622915

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