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What is the minimum value for this bond

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Reference no: EM133171601

Question - XYZ has a $1000 face value 4.9% semi-annual coupon convertible bond that is exchangeable for 18 shares of the company stock similar non-convertible bonds are price to yield 7.4%. The bond matures in 20 years. XYZ stock is currently trading at $45.

Required -

A. What is the conversion price?

B. What is the straight bond value?

C. What is the Conversion value?

D. What is the Minimum value for this bond?

Reference no: EM133171601

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