CIMA Exam CIMAPRA19-F03-1 Topic 6 Question 41 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam

Question #: 41
Topic #: 6

Acompanyhas 8% convertible bonds in issue. The bonds are convertible in 3 years time at a ratio of 20 ordinary shares per $100 nominal value bond.

Each share:

* has a current market value of $5.60

* is expected to grow at 5% each year

What is the expected conversion valueof each$100nominal value bondin 3 years' time?

A$129.6

B$117.6

C$100.0

D$112.0

Show Suggested Answer

Suggested Answer: A

by Reena at May 07, 2022, 02:50 PM

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