You own a bond with a face value of $1,000 and a conversion ratio of 350. What is the conversion price? The conversion price for this bond is $ (Round to the nearest cent.)

You buy a bond that pays annual interest payments of 7% of the bond’s face value of $1000.  You initially pay $950 for the bond.  You receive an annual interest payment after one year, then sell the bond for $880.  What is your total rate of return on the investment, expressed as a percentage of the purchase price?

a bond is selling for 850 and pays coupon of 0.09 what is the current yiels

You own a bond that pays ​$100 in annual​ interest, with a ​$1,000 par value. It matures in 15years. The​ market's required yield to maturity on a​ comparable-risk bond is 11 percent.   a.  Calculate the value of the bond. b.  How does the value change if the yield to maturity on a​ comparable-risk bond​ (i) increases to 16 percent or​ (ii) decreases to 6 percent? c.  Explain the implications of your answers in part b as they relate to interest-rate risk, premium​ bonds, and discount bonds. d.  Assume that the bond matures in 5 years instead of 15 years and recalculate your answers in parts a and b. e.  Explain the implications of your answers in part d as they relate to​ interest-rate risk, premium​ bonds, and discount bonds.

If you were to purchase a bond for $1,100 that paid $50 per year in dividends, what will be the current yield of your bond?

A $1,000 face value bond has a conversion ratio of 40. You estimate the transaction costs of conversion to be 2.8% of the face value of the bond. What price must the stock reach in order for you to​ convert?

Jeremy Kohn is planning to invest in a 6-year bond that pays a 12 percent coupon. The current market rate for similar bonds is 8 percent. Assume semiannual coupon payments. What is the maximum price that should be paid for this bond? (Do not round intermediate computations. Round your final answer to the nearest dollar.) O $951 O $1,000 O $1,188 O $1,056

Suppose you own a convertible bond that has a conversion ratio equal to 62. Each convertible bond has a face value equal to $1,000. The current market value of the company's common stock is $16, and the bond is selling for $1,042. If you want to liquidate your position today because you need money to pay your rent, should you sell the bond or should you convert the bond into common stock and then sell the stock? Explain your answer. Round your answers to the nearest dollar. Selling the bond would generate $_______   . Converting the bond and selling the common stock would generate $_______   . Thus, it would be better to SELL THE BOND / CONVERT THE BOND INTO COMMON STOCK AND THEN SELL THE STOCK

Bond A makes semi-annual interest payments of $30.  Bond B makes an annual payment of $50.  All else equal, which one has the lower coupon rate? Select one:  a. B b. A=B c. A

If you asked your broker to buy you a 12% bond when the market interest rate for such bonds was 11%, would you expect to pay more or less thanthe face amount for the bond? Explain.