A convertible bond has a face value of $5,000, a conversion price of $40, a coupon rate of 6 percent, semi-annual payments, and
1 answer:
You might be interested in
Net Present Value is the difference between the present value of cash flows and the initial investment.
Net Present Value = Present Value of cash flows - Initial Investment
The following image shows the Net Present value of the cash flows:
Net Present Value = $122,142 - $120,000
Net Present Value = $2,142
