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[14 Points] You have been hired to value a new 20-year convertible bond. The bond has a coupon rate of 3%, payable semiannually, and its

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[14 Points] You have been hired to value a new 20-year convertible bond. The bond has a coupon rate of 3%, payable semiannually, and its face value if $1,000. The conversion price is $50, and the stock currently sells for $38. a. What is the minimum value of the bond? Comparable nonconvertible bonds are priced to yield 4% b. What is the conversion premium for this bond

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