Business, 26.06.2020 15:01 1tzM3

Maple Aircraft has issued a convertible bond at 4.75% interest due 2020. The market price of the convertible is 93% of face value (face value is $1,000). The conversion price is $45. Assume that the value of the bond in the absence of a conversion feature is about 63% of face value. How much is the convertible holder paying for the option to buy one share of common stock?

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Maple Aircraft has issued a convertible bond at 4.75% interest due 2020. The market price of the con...