Determining the minimum value of bond


A convertible bond has a 7 percent coupon, paid semiannually, and will mature in 20 years. If the bond were not convertible, it would be priced to yield 6 percent. The conversion ratio on the bond is 15 and the stock is currently selling for $54 per share. What is the minimum value of this bond?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Determining the minimum value of bond
Reference No:- TGS044838

Expected delivery within 24 Hours