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qwertybio qwertybio
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4 months ago
A 12% coupon convertible bond has 20 years to maturity. Market rates on similar non-convertible bonds are 9.25%. Each bond is convertible into 20 common. The shares are currently trading at $40. What is the floor value of the bond, assuming annual coupon payments?

▸ $  800

▸ $2,000

▸ $1,247

▸ $1,000
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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apinaapina
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qwertybio Author
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4 months ago
Thanks
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You make an excellent tutor!
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