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Calculate the Incremental EPS for the Following Instrument: Convertible Bonds

Question 9

Multiple Choice

Calculate the incremental EPS for the following instrument: Convertible bonds outstanding, yield of 6% and coupon rate of 6%
$3,500,000
Issue date
January 1, 2021
Maturity date
December 31, 2028
Conversion rate for each $1,000 bond
40 ordinary shares
Income tax rate
30%


A) 1.05
B) 1.88
C) 40,000
D) 3.15

Correct Answer:

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