The data given below relates to a convertible bond: Face value Rs.250 Coupon rate 12%...
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The data given below relates to a convertible bond: Face value Rs Coupon rate Conversion date from today years No of shares per bond Market price of share Rs Straight value of bond Rs Market price of convertible bond Rs Prevailing yield of same tenure, similar type nonconvertible bond
Next year dividend on equity stock per share Rs Calculate: a Conversion ratio b Conversion price c Conversion or stock value of bond d The straight value e The percentage of downside risk f The conversion premium g The conversion parity price of the stock h Premium payback period i Yield sacrifice
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