Explore BrainMass

# Conversion (or stock) value of convertible bonds?

Not what you're looking for? Search our solutions OR ask your own Custom question.

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

What is the conversion (or stock) value of each of the following convertible bonds?

a. A \$1,000-par-value bond that is convertible into 25 shares of common stock. The common stock is currently selling for \$50 per share.

b. A \$1,000-par-value bond that is convertible into 12.5 shares of common stock. The common stock is currently selling for \$42 per share.

c. A \$1,000-par-value bond that is convertible into 100 shares of common stock. The common stock is currently selling for \$10.50 per share.

Please show all calculations and work.

Â© BrainMass Inc. brainmass.com March 4, 2021, 8:49 pm ad1c9bdddf
https://brainmass.com/business/convertible-bonds/conversion-or-stock-value-of-convertible-bonds-196614

#### Solution Preview

What is the conversion (or stock) value of each of the following convertible bonds?

a. A \$1,000-par-value bond that is convertible into 25 shares of common stock. The common stock is currently ...

#### Solution Summary

This solution is comprised of a detailed explanation to answer what is the conversion (or stock) value of each of the following convertible bonds.

\$2.49