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What is the conversion value of issue

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Reference no: EM132724465

A certain 6% annual coupon rate convertible bond ($1000 par value, maturing in 20 years) is convertible at the holder's option into 20 shares of common stock. The bond is currently trading at $800. The stock (which pays 75c a share in annual dividends) is currently priced in the market at $35 a share.

-What is the bond's conversion price?

-What is its conversion ratio?

-What is the conversion value of this issue? What is its conversion parity?

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

-What is the bond's payback period?

Reference no: EM132724465

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