Top Posters
Since Sunday
j
22
22
i
19
a
18
z
18
m
17
D
17
D
16
j
16
K
16
s
16
a
16
New Topic  
wrote...
Posts: 1450
Rep: 0 0
2 years ago
A firm has an outstanding 15-year convertible bond issue with a $1,000 par value and a stated annual interest rate of 7 percent. The bond is convertible into 50 shares of common stock which has a current market price of $25. A straight bond could have been sold with a 10 percent stated interest rate. The conversion value of the bond is ________.
A) $1,328
B) $1,250
C) $1,000
D) $771
Textbook 
Principles of Managerial Finance
Edition: 14th
Authors:
Read 79 times
1 Reply
Replies
Answer verified by a subject expert
wrote...
Top Poster
Posts: 957
2 years ago
Sign in or Sign up in seconds to unlock everything.
B
1
"It is better to fail in originality than to succeed in imitation."
Related Topics
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  103 People Browsing
Your Opinion
Which of the following is the best resource to supplement your studies:
Votes: 53

Related Images
 839
 172
 17