What is the convertible bonds conversion premium

Assignment Help Finance Basics
Reference no: EM13834623

A $1000 per value convertible bond has a conversion price of $50. It is currently selling for $1,120 despite the fact that the bond's coupon rate and the market rate are equal. The common stock obtained upon conversion is selling for $54 per share. What is the convertible bond's conversion premium? 

Reference no: EM13834623

Questions Cloud

How much would you save lose if you decided to refinance : The total fee to refinance your loan is $15,000, when you include all the various costs of refinancing. Should you refinance the remaining balance for the remaining 20 years? How much would you save/lose if you decided to refinance?
Problem regarding the regression analysis : When analyzing the costs of a business, certain costs may include both fixed and variable components. This type of cost is known as a "mixed" cost.
What is the npv of this project : The manager of the new project has found that the average return on equity is 20%, and the average debt-to-equity ratio is 1.00, in the wine industry. All the debt in this industry is viewed as default free by the market. The risk free rate is 4%, th..
A standard normal distribution : One way to find probabilities from a Standard Normal Distribution is to use probability tables, which are located inside the front cover of your textbook. According to the table, what is the probability when z ≤ -1.75?  The probability when z ≤ 1...
What is the convertible bonds conversion premium : A $1000 per value convertible bond has a conversion price of $50. It is currently selling for $1,120 despite the fact that the bond's coupon rate and the market rate are equal. The common stock obtained upon conversion is selling for $54 per share. W..
Universal burger is concerned about product waste : Universal Burger is concerned about product waste, so they sampled their burger waste record from the past year with the following results:  Number of Burgers Discarded During a Shift:  2, 16, 4, 12, 19, 29, 24, 7, 19, 22, 14, 8, 24, 31, 18, 20, 16, ..
Question regarding the three treasury issues : 1. Consider the prices of the following three Treasury issues as of February 24, 2012
Explain what are the different types of biofilms : What are the mechanisms by which bacteria form biofilms. What are the different types of biofilms. What is the structure of a biofilm
Administrator competencies and paths to leadership : Administrator Competencies and Paths to Leadership

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd