A company has convertible loan notes in issue which are due for redemption or conversion in exactly in two years.
Posted: Mon Mar 07, 2022 8:47 am
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
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