What is the price of the convertible bonds

Assignment Help Financial Management
Reference no: EM131317629

The bonds of goniff bank and trust have a conversion premium of $38. Their conversion price is $15. The common stock price is $13.20. Assume each bond has $1,000 par value. What is the price of the convertible bonds?

Reference no: EM131317629

Questions Cloud

Take based on the time value of money : if I were to offer you $5,000 today or $10,000 10 years from now, which would you take based on the time value of money? Or would you need some additional information in order to answer that question? If so, what information would you like to have?
State the divergence theorem and discuss its application : Are all Maxwell's equations in differential form independent? If not, which of them are independent?
Implement the bankers algorithm for deadlock avoidance : Implement the Banker's algorithm for deadlock avoidance, that works on a given set of N processes and M resource types (N
Earnings growth without affecting the value : Can a company increase its earnings growth without affecting the value of its equity? Explain
What is the price of the convertible bonds : The bonds of goniff bank and trust have a conversion premium of $38. Their conversion price is $15. The common stock price is $13.20. Assume each bond has $1,000 par value. What is the price of the convertible bonds?
What is the rate of return for the long position : Futures Daily Settlement. Consider the following sequence of prices for a currency futures contract. Each contact involves 10,000 units of the foreign currency. The initial and maintenance margin requirements are USD 800 and USD 500 respectively. Wha..
What is a divergence meter : Distinguish between the physical interpretations of the divergence and the curl of a vector field by means of examples.
What is the conversion value of the bond : Plunkett gym equipment inc. has a $1,000 par value convertible bond outstanding that can be converted in 45 shares of common stock. The common stock is currently selling for $27.60 per share and the convertible bond is selling for $1,277.50
Create presentations using cascading style sheets and dhtml : Describe the structure of the World Wide Web as interconnected hypertext documents. Create and validate HTML documents. Create presentations using Cascading Style Sheets and DHTML.

Reviews

Write a Review

Financial Management Questions & Answers

  Fund manager has a well-diversified portfolio

A fund manager has a well-diversified portfolio that mirrors the performance of the S&P 500 and is worth $510 million. The value of the S&P 500 is 1,700, and the portfolio manager would like to buy insurance against a reduction of more than 5% in the..

  First payment will go to paying down the principal balance

On June 1, you borrowed $220,000 to buy a house. The mortgage rate is 4.25% compounded monthly. The loan is to be repaid in equal monthly payments of $1,655.02 over fifteen years. The first payment is due on July 1. How much of this first payment wil..

  Coupon bond with annual payments

ugenheim, Inc. offers a 8.75 percent coupon bond with annual payments. The yield to maturity is 4.775 percent and the maturity date is 9 years. What is the market price of a $1,000 face value bond? Max, 22, just started working full-time and plans to..

  What is the future value-compounded semiannually

What is the future value of $2,000 in 20 years assuming an interest rate of 7.3 percent compounded semiannually?

  Skateboard sales are expected to increase

AFN equation Broussard Skateboard's sales are expected to increase by 25% from $8.4 million in 2015 to $10.50 million in 2016. Its assets totaled $4 million at the end of 2015. Broussard is already at full capacity, so its assets must grow at the sam..

  Present value of your windfall if appropriate discount rate

You have just received notification that you have won the $2.13 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you’re around to collect), 67 years from now. What is the present value..

  Discuss the total deposits into domestic deposits

From the total deposits report collected above from the FDIC statistics on depository institutions website please discuss the total deposits into domestic deposits versus foreign; total deposit into interest-bearing versus non-interest-bearing deposi..

  What is the interest rate that the bank can lock in

On January 8, 2016, a bank wants to lock in the 3-month interest rate starting on June 20, 2017. Currently, 6/2017 Eurodollar futures price is 94.93 and 9/2017 Eudollar futures price is 97.55. What is the interest rate that the bank can lock in? (Mar..

  Estimated replacement cost

Your firm must replace its packing machine in 20 years when it's expected to wear out. The estimated replacement cost is $1,350,000. How much must the company save (invest) each year at 4% to accumulate enough to replace the machine?

  Derive the functional relationship between the no arbitrage

Derive the functional relationship between the no arbitrage values of the two vertical spreads, C(K1)-C(K2) and C(K2)-C(K3)?

  After-tax market rate of return on research

The research and development division of a large corporation is considering the purchase of a new tunneling X-ray microscope for $320,125. The projected net benefits from gains in materials engineering is projected to be $127,000 in today’s real doll..

  When compounding occurs annually and the investment lasts

When compounding occurs annually and the investment lasts longer than one year, compound interest:

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