A convertible bond has: Conversion ratio = 25 Face value $1,200 = Coupon rate = 7% Market price of the company's stock = $18 per share What is the convertible bond's conversion value?
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- If convertible bond has solve this accounting questionsDo fast answer of this accounting questionsCalculate the market conversion price for a convertible bond with par value of $4000, coupon rate of 5%, market price of $4000, a conversion ratio of 16, and current stock price of $202. 1. Assuming, the issuing company pays an annual dividend of $12 per share, what is the favorable income differential (yield advantage) per share for this bond? 2. Calculate the premium payback period for this bond.
- 1. What is the market conversion price if the market conversion premium per share is $307 and the underlying share price is $2.75? Will these convertibles price more like bonds or stocks?I don't need ai answer general accountingConsider a convertible bond as follows: par value: $1,000.00 coupon rate: 5.00% market price of the convertible bond: $950.00 conversion ratio: 22 yield to maturity of straight bond: 10.00% stock price: $30.00 DPS: $1.00 If the premium over straight value is 12.5%, what is the straight value of the bond?
- The following facts are available about a convertible bond: Market Price of issuer's common stock = S = 100, uS = 110, dS = 90, Interest Rate = 3%, Face Value of a Convertible Bond (E) = 1,000. Using the One Period Binomial Model to create a replicating portfolio, calculate the price of this convertible bond. a. $1,001.67 b. $1,018.51 c. $1,033.98 d. $1,041.15 Do it correctly with step by step explanation.A bond has a face value of $100 and a conversion ratio of 25. What is a good time to convert to equity for bond holders given the following stock price? A) $0.3 B) $3 C) $5 D) $4A $1,000 face value bond has a conversion ratio of 49. You estimate the transaction costs of conversion to be 3.4% of the face value of the bond. What price must the stock reach in order for you to convert? The required price per share will be $ (Round to the nearest cent.)
- Please help me understand how to answer the last equation?If the YTM on the following bonds are identical except, what is the price of bond B? Bond A Bond B Face value $1,000 $1,000 Semiannual coupon $45 $35 Years to maturity 20 20 Price $1,098.96 ?A $1,000 face value bond has a conversion ratio of 40. You estimate the transaction costs of conversion to be 2.8% of the face value of the bond. What price must the stock reach in order for you to convert?