Daniel
#1
Hi!
If a bond is issued at $800 with a face value of $1000 and trades at $700.
What would be the conversion price?
From what I find in the forum we usually say conversion price = par/conversion ratio.
Here
I find that they divide the issue price (not the face value) by the conversion ratio.
Could you tell me what is correct?
MikeyF
#2
You have your formula
conversion price = par/conversion ratio.
You have par valeu =- face vaue = $1000
But you have not givena conversion ratio - the number of shares you can covert each bond into.