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Topic: CONVERTIBLE BONDS (

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KSM94
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Joined: 05 Feb 2009
Online Status: Offline
Posts: 47

Posted: 05 Apr 2011 at 20:01 \| IP Logged

6% convertible non-collable bond issued 5 years ago and 5 years to maturity. Interest payments is on quarterl. current market rate on similar bonds 3.50 % comounded quarterly. Par value of Bond is $1000 and convertible at 30 shares, share are currently trading at $ 35.75. find followings:
1- Bond Value
2- Conversion Price for Bond
3- Conversion Value for Bond
4- Minimum Price at which bond will trade
5- Conversion Premium if bond is currently trading for $ 1120

Appreciate if some one answer above

Thanks in advance

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