Airways common stock is currently priced at $39. its 8 percent convertible debentures issued at their $1,000 par and are currently priced at $1,050. Each debenture can be converted into 25 shares of common stock at any time before 2010. What is the conversion value of the bond?
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Airways common stock is currently priced at $39. its 8 percent convertible debentures issued at their $1,000 par and are currently priced at $1,050. Each debenture can be converted into 25 shares of common stock at any time before 2010. What is the conversion
a. $1,000
b. $975
c. $900
d. $1,050
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- Blueing Airways' common stock is currently priced at P39. Its 8 percent convertible debentures issued at their P1,000 par and are currently priced at P1,050. Each debenture can be converted into 25 shares of common stock at any time before 2010. What is the conversion value of the bond? O P1,000 O P900 P1,050 O P975Ashvin1. 2. 3. 1. 2. On August 1, 2025, Lane Corporation called its 10% convertible bonds for conversion. The $8,000,000 par bonds were converted into 320,000 shares of $20 par common stock. On August 1, there was $800,000 of the unamortized premium applicable to the bonds. The fair value of the common stock was $20 per share. Ignore all interest payments. No. Account Titles and Explanation 3. Packard, Inc. decides to issue convertible bonds instead of common stock. The company issues 10% convertible bonds, par $4,000,000, at 97. The investment banker indicates that if the bonds had not been convertible, they would have sold at 94. Gomez Company issues $9,000,000 of bonds with a coupon rate of 8%. To help the sale, detachable stock warrants are issued at the rate of ten warrants for each $1,000 bond sold. It is estimated that the value of the bonds without the warrants is $8,883,000 and the value of the warrants is $567,000. The bonds with the warrants sold at 101. Bonds Payable Premium on…