ECON 001b - You purchased a $10,000 convertible bond

ECON 001b - You purchased a $10,000 convertible bond

Question # 00602637 Posted By: dr.tony Updated on: 10/12/2017 05:07 AM Due on: 10/12/2017
Subject Economics Topic General Economics Tutorials:
Question
Dot Image
You purchased a $10,000 convertible bond from Ajax Corporation at issue. At the time the bond was issued, Ajax's stock traded at $15 per share. Ajax offered a conversion privilege of 20 shares of common stock per $1,000 in bonds. This stock now trades at $60. Assuming there are no costs to convert the bonds to stock, what is the minimum the bond would be trading for on the open market?
Dot Image
Report this Question as Inappropriate
Tutorials for this Question
  1. dr.tony
    Tutorial # 00601034 Posted By: dr.tony Posted on: 10/12/2017 05:07 AM
    Puchased By: 3
    Tutorial Preview
    The solution of ECON 001b - You purchased a $10,000 convertible bond...
      Get the Solution
    Attachments
    You_purchased_a.docx (12.39 KB)
    Recent Feedback
    Rated By Feedback Comments Rated On
    Kai...3265 Rating Take care of presentation of work 04/13/2020
  Get the Solution

Great! We have found the solution of this question!

Related Questions and Answers

Whatsapp Lisa