Compute the premium payback period of the following convertible bond: par=$100, coupon rate=6%, conversion ratio=19, current market price=$114.87. The underlying stock is currently trading at $4.14, and it pays an annual dividend of $0.06 per share. Round your answer to 2 decimal places

Compute the premium payback period of the following convertible bond: par=$100, coupon rate=6%, conversion ratio=19, current market price=$114.87. The underlying stock is currently trading at $4.14, and it pays an annual dividend of $0.06 per share. Round your answer to 2 decimal places

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter14: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 7DTM

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