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3. An 8-year convertible bond with a coupon rate 6% can be converted into 20 shares of common stock. This bond has a yield of

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3. An 8-year convertible bond with a coupon rate 6% can be converted into 20 shares of common stock. This bond has a yield of 7%. Its current stock price is $40 per share and it is expected to grow at 5% per year. Approximately when will the bondholders on this convertible bond will convert this bond into 20 shares of common stocks? Please support your answers with calculations. ( 3 points)

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