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Business, 18.05.2021 19:20 jenkinjack7654

A certain ​% annual coupon rate convertible bond​ ($1,000 par​ value, maturing in 20​ years) is convertible at the​ holder's option into shares of common stock. The bond is currently trading at ​$. The stock​ (which pays ​¢ a share in annual​ dividends) is currently priced in the market at ​$ a share. 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 what is the investment value of the​ convertible?

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A certain ​% annual coupon rate convertible bond​ ($1,000 par​ value, maturing in 20​ years) is conv...
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