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denausor denausor
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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 straight bond value, assuming annual coupon payments?

▸ $1,287

▸ $1,207

▸ $1,247

▸ $1,000
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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lyssa1605lyssa1605
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4 months ago
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denausor Author
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4 months ago
Thanks for your help!!
emilyas19
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Yesterday
Smart ... Thanks!
joyceess
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2 hours ago
Correct Slight Smile TY
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