Dragon Corporation has three types of debt outstanding, even though it has plenty of cash. Coupons are paid on March 1. Bond P is 10-year, 8% coupon, $1000 face value straight debt. Bond Q is 10-year, 8% coupon, $1000 face value debt, convertible into 20 shares on March 2, 2025. Bond R is 10-year, 8% coupon, $1000 face value debt, callable at 110 on March 2, 2025. Suppose, on March 2, 2025: Bond P has price 108; Dragon share price is 55. what is the quoted price of Bond Q?

Dragon Corporation has three types of debt outstanding, even though it has plenty of cash. Coupons are paid on March 1. Bond P is 10-year, 8% coupon, $1000 face value straight debt. Bond Q is 10-year, 8% coupon, $1000 face value debt, convertible into 20 shares on March 2, 2025. Bond R is 10-year, 8% coupon, $1000 face value debt, callable at 110 on March 2, 2025. Suppose, on March 2, 2025: Bond P has price 108; Dragon share price is 55. what is the quoted price of Bond Q?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 3EB: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual...

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