J R. I can't tell by your post exactly what you are thinking, but I think you may be laboring under a misconception. I'm no expert either, so if I'm wrong, then the matter is still open to discussion.
It's my understanding that the 6 percent convertible subordinated debentures have a redemption price of $1,024 plus accrued and unpaid interest of $30.00 from December 1, 1998 to the redemption date. For each $1,000 principal amount the yield is $1,054.
Alternatively, the holder may convert to Apple common stock at a conversion price of $29.205 per share of stock, yielding 34.2407 shares of AAPL for each $1000 of original investment.
Ergo, at any share price above 30.78 bond holders will convert. Below that price they will redeem for their $1,054.
HerbVic
Edit: apple.com |
