What is bond value to price convert at par what is coupon


CONVERTS

10-year convertible bond

Stock price is 15

Converts into 50 shares

What is strike?

Option value is $2.00 per share

What is total option value?

Regular bond rate is 5%, s.a.

What is bond value to price convert at par?

What is coupon?

How much option value do you need if coupon drops to 1%?

Would strike be higher or lower?   

Would conversion ratio be higher or lower?

If option value is $4 per share, how many options do you need?

Then how many strike?

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Financial Management: What is bond value to price convert at par what is coupon
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