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21. A convertible bond has a face value of $1,000 and a conversion price of $40. The bond has a 6 percent coupon, pays interest

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21. A convertible bond has a face value of $1,000 and a conversion price of $40. The bond has a 6 percent coupon, pays interest semiannually, and matures in 12 years. Similar bonds are yielding 7.5 percent. The current price of the stock is $70 per share. What is the conversion value of this bond? $1,750 $2,500 $3,250 D. $850 E. $4,550 B. C

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