Exhibit 20.1

The following data apply to Saunders Corporation's convertible bonds: $\begin{array}{lrlr}
\text { Maturity } & 13 & \text { Stock price } & \$ 34.00 \
\text { Par value } & \$ 1,000 & \text { Conversion price } & \$ 43.00 \
\text { Annual coupon } & 5.20 \% & \text { Straight-debt yield } & 9.80 \%
\end{array}$
-Refer to Exhibit 20.1.What is the bond's conversion ratio?

Question

Exhibit 20.1
​
The following data apply to Saunders Corporation's convertible bonds: $\begin{array}{lrlr}
\text { Maturity } & 13 & \text { Stock price } & \$ 34.00 \
\text { Par value } & \$ 1,000 & \text { Conversion price } & \$ 43.00 \
\text { Annual coupon } & 5.20 \% & \text { Straight-debt yield } & 9.80 \%
\end{array}$
-Refer to Exhibit 20.1.What is the bond's conversion ratio?

Quizplus · Accepted Answer

The Answer of Exhibit 20.1
​
The following data apply to Saunders Corporation's convertible bonds: $\begin{array}{lrlr}
\text { Maturity } & 13 & \text { Stock price } & \$ 34.00 \
\text { Par value } & \$ 1,000 & \text { Conversion price } & \$ 43.00 \
\text { Annual coupon } & 5.20 \% & \text { Straight-debt yield } & 9.80 \%
\end{array}$
-Refer to Exhibit 20.1.What is the bond's conversion ratio?

Exhibit 20 -Refer to Exhibit 20