Aurora Tech Corp. issued a convertible bond with the following details: Conversion Ratio = 25 Face Value $1,200 Coupon Rate 7% = Market Price of Company's Stock = $18 per share What is the conversion value of this convertible bond?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter20: Hybrid Financing: Preferred Stock, Warrants, And Convertibles
Section: Chapter Questions
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Aurora Tech Corp. issued a convertible bond with the following
details:
Conversion Ratio = 25
Face Value $1,200
Coupon Rate 7%
=
Market Price of Company's Stock = $18 per share
What is the conversion value of this convertible bond?
Transcribed Image Text:Aurora Tech Corp. issued a convertible bond with the following details: Conversion Ratio = 25 Face Value $1,200 Coupon Rate 7% = Market Price of Company's Stock = $18 per share What is the conversion value of this convertible bond?
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