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What is the conversion value of the bond

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Question - Lynd Corporation common stock currently sells for $25, and its 8 years maturity convertible bond with 3% annual coupon rate paid semi-annually has a yield to maturity of 4%. Each bond can be converted into 35 shares of common stock at any time before its maturity. The common stock is expected to grow by 5% every year. What is the conversion value of the bond and are bondholders convert their bond into common stock today?

Reference no: EM133020413

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