Homework: Homework 8 Save Score: 0 of 1 pt 3 of 10 (2 complete) HW...
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Homework: Homework 8 Save Score: 0 of 1 pt 3 of 10 (2 complete) HW Score: 13.33%, 1.33 of 10 P17-14 (similar to) Determining values Convertible bond Craig's Cake Company has an outstanding issue of 20-year convertible bonds with a $1,000 par value. These bonds are convertible into 75 shares of common stock. They have a 11% annual coupon interest rate, whereas the interest rate on straight bonds of similar risk is 15% a. Calculate the straight bond value of this bond b. Calculate the conversion (or stock) value of the bond when the market price is $10 per share of common stock c. What is the minimum market value of the bond? a. The straight value of the bond is $(Round to the nearest cent) Enter your answer in the answer box and then click Check Answer parts remaining Clear All Final Check
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