1-P10 Assume you just paid$1 comma 226for a convertible bond that carries a(n)8.54%coupon and has15years to maturity.


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?

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