A $1,000 convertible bond in Maddy corporation can be exchanged for 50 common shares. If the shares are trading at $26.00 what is the conversion value of the bond?
The $1,000 convertible bonds in Maddy corporation have 8 years to maturity. The bonds make semi annual coupon payments at a rate of j2 = 4% and yield j2-7%. Price this as a bond.
What is the minimum value of the Maddy bonds described in the previous two questions?
