A convertible bond has a par value of $1,000 and a current market price of $850. The current price of the issuing firm's stock is $27, and the conversion ratio is 30 shares. The bond's market conversion value is Multiple Choice   $729.   $810.   $810.   $870.   None of the options are correct.

(please dont answer in excel as im not familiar with that yet, equations and worded answers please) Given the following information concerning a convertible bond: Coupon: 6 percent ($60 per $1,000 bond) Exercise Price: $25 Maturity date: 20 years Call Price: $1040 Price of the common stock: $30 If the bond were not convertible, what would be its approximate value if comparable interest rates were 9 percent? How many shares can the bond be converted into? What is the value of the bond in terms of stock?       4. What is the current minimum price that the bond will command

A 8-year bond with a face value of $1,000 currently sells for $1150. Which of the following statements is right Group of answer choices a)The bond’s current yield is less than its yield to maturity b)The bond’s yield to maturity is less than its coupon rate. c)The bond’s coupon rate exceeds its current yield. d)The bond’s yield to maturity is greater than its coupon rate.

Susan is looking into a convertible bond but does not know how to value this bond. The bond has a $1,000 face value and a conversion ratio of 36. What is the conversion price? If the stock price is $42, what is the conversion value?   What is the downside risk percentage of the bond if the current price is $1,250 and the investment premium is $861.53? Is this risk concerning?   The stock is currently selling for $42 per share. The issuer of the bond has announced a call; the call price is 108. What are your options here? What should you do?

Sherwood Forest Products has a convertible bond quoted on the NYSE bond market at 96. (Bond quotes represent the percentage of par value. Thus, 70 represents $700, 80 represents $800, and so on.) It matures in 10 years and carries a coupon rate of 7.00 percent. The conversion ratio is 20, and the common stock is currently selling for $28 per share on the NYSE. a. Compute the conversion premium. (Do not round intermediate calculations and round your answer to 2 decimal places.) Conversion premium b. At what price does the common stock need to sell for the conversion value to be equal to the current bond price? (Do not round intermediate calculations and round your answer to 2 decimal places.) Stock price

)A one-year zero-coupon $4750 bond has a price of $4611.65. A two-year zero-coupon $4750 bond has a price of $4434.18. A three-year $2000 6% par-value bond has annual coupons and a price of $2113.20. (a) Find the spot rate r3. Write your answer as a percentage rounded to three points after the decimal. %3D (b) Find the forward rate f1,3). Write your answer as a percentage rounded to three points after the decimal. f1,3 = %3D

You purchase a $100,000 bond futures contract at 96.5.                 a)  Assume that the bond futures price falls to 94.  What is your gain/loss?               b)  Assume that the bond futures price rises to 98.  What is your gain/loss?