Consider the following convertible bond: The current market price of XYZ common stock is $11....
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Accounting
Consider the following convertible bond:
The current market price of XYZ common stock is $11. Dividends per XYZ common stock share = $1. Current market price of XYZ bond = $990. Par value = $1,000. Conversion ratio = 75. Coupon rate = 10% (semiannual). Maturity = 10 years. Comparable non-convertible yield = 14%
What is the market conversion premium ratio?
Round your answer to 2 decimal places. For example, if your answer is 25.689, please write down 25.69.
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