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3. (12 points). Suppose you have an 8% coupon bond that pays semiannual coupons and will mature in years. The face value is $1000 and

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3. (12 points). Suppose you have an 8% coupon bond that pays semiannual coupons and will mature in years. The face value is $1000 and the yield to maturity on similar bonds is 6%. The convertible with a conversion price o bond is also f $100. The stock is currently selling for $110. What is the minimum price of this convertible bond? Minimum price of convertible bond is 3. (12 points). Suppose you have an 8% coupon bond that pays semiannual coupons and will mature in years. The face value is $1000 and the yield to maturity on similar bonds is 6%. The convertible with a conversion price o bond is also f $100. The stock is currently selling for $110. What is the minimum price of this convertible bond? Minimum price of convertible bond is

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