You purchased one of big corps 8 10-year convertible bonds


You purchased one of Big Corp's 8%, 10-year convertible bonds at its $1,000 part value a year ago when the company's common stock was selling for $20. Similar Bonds without conversion feature returned 12% at the time. the bond is convertible into stock at a price of $30. the stock is now selling for $35. Calculate the total return on your investment. What would your return have been if you had invested $1000 in Big's stock instead of the bond.

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Financial Management: You purchased one of big corps 8 10-year convertible bonds
Reference No:- TGS01567614

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