某公司财务管理及财务知识分析（英文版）.pptVIP

20-year, 10% annual coupon, callable convertible bond will sell at its $1,000 par value; straight debt issue would require a 12% coupon. Call the bonds when conversion value $1,200. P0 = $10; D0 = $0.74; g = 8%. Conversion ratio = CR = 80 shares. Assume the following convertible bond data: What conversion price (Pc) is built into the bond? The conversion price is typically set 10% to 30% above the stock price on the issue date. $1,000 80 Pc = = = $12.50. Par value # Shares received Examples of real convertible bonds issued by Internet companies Issuer A B CNET DoubleClic