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What is the straight bond value

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Question 1: A convertible bond has a face value of $1,000 and a conversion price of $22.50. The bond has a 6 percent coupon and pays interest semiannually. The bond matures in six years. Similar bonds are yielding 9 percent. The current price of the stock is $23.24. What is the straight bond value?

A) $865.42

B) $1,033.33

C) $940.91

D) $1,000.00

E) $863.22

Reference no: EM132588987

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