A company has convertible loan notes in issue which are due for redemption or conversion in exactly in two years. The interest received on the convertible loan notes is 8% and the investors require a yield of 10%. The convertible loan notes will be converted for 30 shares or redeemed at $105 per $100. The companys shares are currently trading at $3.30 per share.
What is the current market value of the convertible loan notes? (To the nearest $ and ignoring taxation)
A. $96
B. $99
C. $101
D. $108
A company has convertible loan notes in issue which are due for redemption or conversion in exactly in two years.
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answerhappygod
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