Issued convertible bonds-what are the bonds worth today

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Pacheco Inc. issued convertible bonds 10 years ago. Each bond had an initial term of 30 years, had a face value of $1,000, paid a coupon rate of 11%, and was convertible into 20 shares of Pacheco stock, which was selling for $30 per share at the time. Since then the price of Pacheco shares has risen to $65 and the interest rate has dropped to 8.8%. What are the bonds worth today? Assume bond coupons are paid semiannually. Round the answer to the nearest cent.

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Reference no: EM131528512

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