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5. A company is offering to sell you a convertible bond for $1,100. Through some complicated math, you have determined that the present value of
5. A company is offering to sell you a convertible bond for $1,100. Through some complicated math, you have determined that the present value of the conversion feature is worth $264. The bond is $1000 par value, 5-year, annual coupon, and not callable. If the appropriate discount rate for the bond is 7%, what is the minimum annual coupon payment that will justify the price the company wishes to receive?
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