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A certain 6​% annual coupon rate convertible bond​ (maturing in 20​ years) is convertible at the​...

A certain 6​% annual coupon rate convertible bond​ (maturing in 20​ years) is convertible at the​ holder's option into 20 shares of common stock. The bond is currently trading at ​$800. The stock​ (which pays 72​¢ a share in annual​ dividends) is currently priced in the market at ​$36.34 a share.

a. What is the​ bond's conversion​ price?

b. What is its conversion​ ratio?

c. What is the conversion value of this​ issue?

What is its conversion​ parity?

d. What is the conversion​ premium, in dollars and as a​ percentage?

e. What is the​ bond's payback​ period?

f. If comparably​ rated, nonconvertible bonds sell to yield 8 % ,what is the investment value of the​ convertible?

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