Reading Railroad common stock is currently priced at $30, and its 8% convertible debentures (issued at par, or $1,000) are priced at $850. Each debenture can be converted into 25 shares of common stock at any time before 2005. What is the conversion price (CP) and the conversion value of the bond?© BrainMass Inc. brainmass.com July 19, 2018, 8:04 am ad1c9bdddf
The conversion price of a convertible bond is its face value divided by the number of ...
This solution looks at the conversion price and value of a bond.