What is the conversion? premium

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A certain 7?% annual coupon rate convertible bond? (maturing in 20? years) is convertible at the? holder's option into 23 shares of common stock. The bond is currently trading at ?$820. The stock? (which pays 92?¢ a share in annual? dividends) is currently priced in the market at ?$35.24 a share.

a. What is the? bond's conversion? price?

b. What is its conversion? ratio?

c. What is the conversion value of this? issue? What is its conversion? parity?

d. What is the conversion? premium, in dollars and as a? percentage?

e. What is the? bond's payback? period?

f. If comparably? rated, nonconvertible bonds sell to yield 9%, what is the investment value of the? convertible?

Reference no: EM132798382

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