schweser volume exam1 PM 109-114, Fixed Income conversion, question, current, volume, market

HuskyGrad2010

In this question while calculating for convertible premium per share for convertible bonds, to calculate conversion price they are dividing par value of bonds by conversion ratio and not using current market price of bond which is $947...

I am confused here? what to use par value or current market value

benbenxiong

thats funny because in a different problem, they totally use market price/shs= price

hassan

yes even in CFA books they are using market price...

could you please read the question once...may be I am misreading though I am sure

kickthatcfa

some1 please clarify