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(3) You own convertible bonds from Tulip Plc with a conversion rate of 43 shares per 1,000 face value bond. The current market value of

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(3) You own convertible bonds from Tulip Plc with a conversion rate of 43 shares per 1,000 face value bond. The current market value of Tulip Plc shares and bonds are 31.80 and 1,010 respectively. What is the conversion value of this bond? Would you consider converting Tulip Plc bonds into stock at this time? Explain your answer. [5 marks]

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