How much is the bonds downside risk

Reference no: EM133332171

Question: A convertible bond can be converted into 32 common shares. If the bond investor converts the bond to shares today, she will realize a bond value of $960. The conversion premium per share in the market is $2.4. It is also known that the bond will have a value of $950 if the conversion option is not exercised. How much is the bond's downside risk?

Reference no: EM133332171

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