Assume you just paid $1 comma 226 for a convertible bond that carries a(n) 8.54 % coupon and has 15 years to maturity. The bond can be converted into 24 shares of stock, which are now trading at $50 a share. Find the bond investment value of this issue, given that comparable nonconvertible bonds are currently selling to yield 10.85 %.
The bond investment value of this issue is ______$
2-Rhett purchased a 9 %, zero-coupon bond with a 5 -year maturity and a $25 ,000 par value 5 years ago. The bond matures tomorrow. How much will Rhett receive in total from this investment, assuming all payments are made on these bonds as expected?