Calculate the convert ale bonds option value

Assignment Help Financial Management

Reference no: EM13769374

A convertible bond is selling for $900. It has 10 years to maturity, a $1000 face value, and a 10% coupon paid semi-annually. Similar non convertible bonds are priced to yield 12%. The conversion ration is 40. The stock currently sells for $21.75 per share. Calculate the convert ale bond's option value.

Reference no: EM13769374

Questions Cloud

Using the labor costs shown in the income statements : A productivity index of 110% means that a company’s labor costs would have been 10% higher if it had not made production improvements. Assume that Baldwin had a productivity index of 112% and that Chester had a productivity index of 103%.

What is cost of equity using capm : Suppose our company has a beta of 1.5. The market risk premium is expected to be 9%, and the current risk-free rate is 6%. What is cost of equity using CAPM?

Weighted average cost of the three loans : You have just earned your MBA and have three student loan balances outstanding. They all mature in 5 years. The Amounts owed and the associated interest rates are shown in the table below. You can also combine these loans ($64,000) into a consolidate..

Major sources of short-term financing : If you have your own business how would you develop a short-term financing plan that meets your need for cash? What are some of the major sources of short-term financing you would consider?

Calculate the convert ale bonds option value : A convertible bond is selling for $900. It has 10 years to maturity, a $1000 face value, and a 10% coupon paid semi-annually. Similar non convertible bonds are priced to yield 12%. The conversion ration is 40. The stock currently sells for $21.75 per..

Finding a negative cycle in the graph of o : 1. Finding a negative cycle in the graph of O (NM) [TeX] 2. Finding Euler Euler path or cycle of O (M) 3. Checking on the a cyclic graph and finding the cycle of O (M) All of these algorithm should be well explained and worth showing.

Write a paper on the most stressful event in my life : Write a paper on THE MOST STRESSFUL EVENT IN MY LIFE. Demonstrate the ability to evaluate Stress in life. The paper needs to include the methods you would have used to cope with this stress.

Determine the business-level strategy : Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm.

Filed for bankruptcy protection : The federal government recently provided tax payers' money to major corporations that filed for bankruptcy protection from their creditors. Some have paid the funds back, and others have not. Please provide your opinions, both for and against this..

User Account

All Pages