After issue bond will increase decrease or nothing changes

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Investment firm isuued $1000 per value bond conversion price $25 share issue underlying price $20

1. Calculate convertible issue & ratio

2. After issue bond will increase decrease or nothing changes in bond? Underlying price $23 changed constant is the same why?

3. Bond holder converts the bond to common stock price underlying $35. Calculate the total market value of new share?

4. Balance sheet change bond holders converts bond to common stock details?

5. Three advantages investors in buying bond instead of the stock it self ? 

Reference no: EM13801019

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