RWJ 7th Edition Solutions

The conversion ratio is the par value divided by the conversion price, so: Conversion ratio = $1,000/$65 . Conversion ratio = 15.38 . The conversion price is the conversion ratio times the stock price, so: Conversion value = 15.38($50) Conversion value = $769.23. The minimum value for this bond is the straight bond floor value of $794.53. b. ................
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