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A Firm Issues the Convertible Debt Shown Above

Question 9

Multiple Choice

A firm issues the convertible debt shown above.The price of stock in this company on July 1,2008 is $6.58.What is the minimum call price that would make a bondholder prefer to accept the call rather than convert? A) par B) par plus 0.6% C) par plus 4% D) par plus 6% E) par plus 8%
A firm issues the convertible debt shown above.The price of stock in this company on July 1,2008 is $6.58.What is the minimum call price that would make a bondholder prefer to accept the call rather than convert?


A) par
B) par plus 0.6%
C) par plus 4%
D) par plus 6%
E) par plus 8%

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