Find conversion permium for bike tours convertible bond

Reference no: EM131956531

Question: The Common Stock of Bike Tours,Inc pays no dividend and has a market price of $80 per share. Bike Tours' 8% ($80 annual coupon) convertible bond sells at 128% of the par value ($1280) and is convertible into common at a stock price of $100 per share. The conversion permium for Bike Tours' convertible bond is _____

Reference no: EM131956531

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