An investor is holding a $1,000 par,10-year 9 percent coupon convertible bond with a 9 percent required bond yield. The bond is convertible into 40 shares of stock. Each share is worth $30. The bond has a current market value of $1,200. If interest rates don't change,what is the maximum gain and loss on the bond?

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The Answer of An investor is holding a $1,000 par,10-year 9 percent coupon convertible bond with a 9 percent required bond yield. The bond is convertible into 40 shares of stock. Each share is worth $30. The bond has a current market value of $1,200. If interest rates don't change,what is the maximum gain and loss on the bond?

An Investor Is Holding a $1,000 Par,10-Year 9 Percent Coupon