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Business, 18.07.2019 01:30 clairajogriggsk

Aconvertible bond is selling for $967, matures in 15 years, has a $1,000 face value, pays interest semiannually, and has a coupon rate of 8 percent. similar non-convertible bonds are priced to yield 4.25 percent per six months. the conversion ratio is 20. the stock currently sells for $47.50 a share. calculate the convertible bond's option value.

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Aconvertible bond is selling for $967, matures in 15 years, has a $1,000 face value, pays interest s...

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