Price a convertible bond with par=$1000, conversion ratio=20, annual coupon rate=8.8%, and 2 years to maturity. The bond is callable at 104% par in year 1, and convertible from year 1 through maturity. Assume annual compounding, a constant one-year discount rate of 10%, and the following binomial model for stock price evolution. Round your answer to 2 decimal places. t = 0t = 1t = 2 74.32 59.68 51.06 51.06 42.53 31.66
Price a convertible bond with par=$1000, conversion ratio=20, annual coupon rate=8.8%, and 2 years to maturity. The bond is callable at 104% par in year 1, and convertible from year 1 through maturity. Assume annual compounding, a constant one-year discount rate of 10%, and the following binomial model for stock price evolution. Round your answer to 2 decimal places. t = 0t = 1t = 2 74.32 59.68 51.06 51.06 42.53 31.66
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Price a convertible bond with par=$1000, conversion ratio=20, annual coupon rate=8.8%, and 2 years to maturity. The bond is callable at 104% par in year 1, and convertible from year 1 through maturity.
Assume annual compounding, a constant one-year discount rate of 10%, and the following binomial model for stock price evolution. Round your answer to 2 decimal places.
t = 0t = 1t = 2 74.32 59.68 51.06 51.06 42.53 31.66
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