A convertible bond has a coupon of 7.5 percent, paid semiannually, and will mature in 15 years. If the bond were not convertible, it would be priced to yield 6.5 percent. The conversion ratio on the bond is 20 and the stock is currently selling for $63 per share. What is the minimum value of this bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Minimum value

A convertible bond has a coupon of 7.5 percent, paid semiannually, and will mature in 15 years. If the bond were not convertible, it would be priced to yield 6.5 percent. The conversion ratio on the bond is 20 and the stock is currently selling for $63 per share. What is the minimum value of this bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Minimum value

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You own a bond with a coupon rate of 6.3 percent and a yield to call of 7.2 percent. The bond currently sells for $1,105. If the bond is callable in five years, what is the call premium of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The answers I got were wrong
What is the Macaulay duration of a bond with a coupon of 5.4 percent, nine years to maturity, and a current price of $1,055.40? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Macaulay Modified Duration 8.046 Years 7.082 Years
Rolling Company bonds have a coupon rate of 5.20 percent, 20 years to maturity, and a current price of $1,146. What is the YTM? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
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