Bond Yields and Prices

Parity Value = Current Stock Price * conversion ratio. $35 * 25 = $875.00. Trade above parity--conversion value is zero. Trading like a straight bond. Interest rate movements drive the price. Trade below parity-conversion has value . conversion price $25 . Conversion ratio: 1000/25 =40 shares . current market price $30 . parity price: 40 X $30 = $1200. if trade below this price--have a ... ................
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