P10.18 (similar to) A certain 7% annual coupon rate convertible bond maturing in 20 years...
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P10.18 (similar to) A certain 7% annual coupon rate convertible bond maturing in 20 years s convertible a he holders option into 23 shares of common stock. The bond is currently trading a $820. The stock which pays 58 a share in annual d a. What is the bond's conversion price? b. What is its conversion ratio? c. What is the conversion value of this issue? What is its conversion parity? d. What is the conversion premium, in dollars and as a percentage? e. What is the bond's payback period? f. If comparably rated, nonconvertible bonds sell to yield 9%, what is the investment value of the convertible? dends is currently priced in the market a $33.61 a share a. The bond's conversion price is (Round to the nearest cent)
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