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5. An investor owns a convertible bond with a 3.5% coupon, paid semi-annually. The bond matures in 9.5 years, and is convertible at a price

5. An investor owns a convertible bond with a 3.5% coupon, paid semi-annually. The bond

matures in 9.5 years, and is convertible at a price of $ 50 per share. If comparable bonds are

yielding 3.8%, and the current market price of the stock is $ 57 per share, what is the

conversion value of the bond?

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