Explore BrainMass

Bond's straight-debt value

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

The following data apply to Saunders Corporation's convertible bonds.
Maturity 10 Stock price $30.00
Par value $1,000 Conversion price $50.00
Annual coupon 7.00% Straight-debt yield 8.00%

What is the bond's straight-debt value at the time of issue?

© BrainMass Inc. brainmass.com March 21, 2019, 9:57 pm ad1c9bdddf

Solution Summary

The solution computes bond's straight-debt value the time of issue.