convertible bond

At what stock price is the conversion value equal to the bond value? Calculate. Find the stock price at which the conversion value equals the bond value.

Business Question In the absence of the conversion feature, the current yield is calculated as the annual coupon divided by the market price, which is 4.75%/0.91 = 5.22%. The yield to maturity is the internal rate of return on the bond and is calculated as the annual interest plus any gain or loss on the […]

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