XYZ Ltd. is planning to expand its business and therefore raising fund by issuing a Convertible Bond of ₹ 10 crore. An investor "Mr. A” is…
CA Final · Advanced Financial Management · MTP · November 2026
XYZ Ltd. is planning to expand its business and therefore raising fund by issuing a Convertible Bond of ₹ 10 crore. An investor "Mr. A” is interested to invest in the bond of XYZ Ltd. Mr. A has following data related to the Convertible Bond.The data given below relates to a convertible bond: Face value ₹ 1000 Coupon rate 12% No. of shares per bond 20 Market price of share ₹ 48 Straight value of bond ₹ 940 Market price of convertible bond ₹ 1060 Maturity 5 Years From the information given above, choose the correct answer to the following questions:
Suggested Answer and Working Notes:
Correct Answer: Option (A)
₹ 960
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