8. M&E, Inc., has an outstanding convertible bond. The bond can be converted into 20 shares of...

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8. M&E, Inc., has an outstanding convertible bond. The bond can be converted into 20 shares of common equity (currently trading at ). The bond has five years of remaining maturity, a par value, and a 6% annual coupon. M&E’s straight debt is currently trading to yield 5%. What is the minimum price of the bond?

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Financial Markets And Institutions

ISBN: 9780134519265

9th Edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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