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Author Question: Coupon:0%Call Date: July 1, 2008Call Price: 104.32%Maturity: July 1, 2015A firm issues the ... (Read 75 times)

Yolanda

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Coupon:0%
Call Date: July 1, 2008
Call Price: 104.32%
Maturity: July 1, 2015
A firm issues the convertible debt shown above. The price of stock in this company on July 1, 2008 is $28.20. What is the minimum conversion ratio that would make a bondholder prefer to convert rather than accept the call price?
◦ 35 shares per $1000 principal amount
◦ 37 shares per $1000 principal amount
◦ 32 shares per $1000 principal amount
◦ 41 shares per $1000 principal amount


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Marked as best answer by Yolanda on Jul 9, 2019

Ahnyah

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Yolanda

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Reply 2 on: Jul 9, 2019
:D TYSM


frankwu0507

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Reply 3 on: Yesterday
Gracias!

 

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