What is the conversion value of the bond what is the


Plunkett Gym Equipment Inc. has a $1,000 par value convertible bond outstanding that can be converted into 40 shares of common stock. The common stock is currently selling for $35.90 a share, and the convertible bond is selling for $1,484.20.

a. What is the conversion value of the bond?

b. What is the conversion premium?

c. What is the conversion price?

 

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