Percentage conversion premium


A $1,000 bond is issued at par. The market price of the common stock at the issue date was $20. The conversion price is $25. (a) What is the conversion ratio? (b) What is the conversion value? (c) What is the percentage conversion premium?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Percentage conversion premium
Reference No:- TGS0557758

Now Priced at $10 (50% Discount)

Recommended (96%)

Rated (4.8/5)