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NEW QUESTION: 1
Steel Dynamics (STLD) has a convertible bond issue that matures in four years. The bond has a face
value of $1,000 and pays a coupon of 5.125%, with interest paid semiannually. The conversion ratio is
5 6.9801.If the stock of Steel Dynamics is currently priced at $15 a share, what is the conversion value of
this bond, to the nearest cent?
A. $854.70
B. $569.80
C. $175.50
D. Until it matures, the conversion value of the bond is equal to its face value of $1,000.
Answer: A
Explanation:
The conversion value of this bond $854.70. It is equal to its conversion ratio of 56.9801 times
the current market price of its stock, $15. Thus, 56.9801 x $15 = $854.70.
NEW QUESTION: 2
A. Option D
B. Option C
C. Option F
D. Option E
E. Option A
F. Option B
Answer: A,B,C
NEW QUESTION: 3
A. Option A
B. Option D
C. Option C
D. Option B
Answer: A
NEW QUESTION: 4
A. Option D
B. Option B
C. Option C
D. Option A
E. Option E
Answer: A,B,E