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Business, 12.08.2020 04:01 deathfire5866

A convertible bond has a face value of $5,000, a conversion price of $40, a coupon rate of 6 percent, semi-annual payments, and a maturity of 12 years. Similar bonds are currently yielding 7.5 percent. The current price of the related stock is $38 per share. What is the conversion value of this bond?

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A convertible bond has a face value of $5,000, a conversion price of $40, a coupon rate of 6 percent...

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