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Author Question: Coupon:0%Conversion Ratio: 158 shares per $1000 principal amountCall Date: July 1, 2008Maturity: ... (Read 98 times)

saliriagwu

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Coupon:0%
Conversion Ratio: 158 shares per $1000 principal amount
Call Date: July 1, 2008
Maturity: July 1, 2015
A firm issues the convertible debt shown above. The price of stock in this company on July 1, 2008 is $6.58. What is the minimum call price that would make a bondholder prefer to accept the call rather than convert?
◦ par plus 4%
◦ par plus 6%
◦ par plus 0.6%
◦ par


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Marked as best answer by saliriagwu on Jul 9, 2019

juwms

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