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7. You bought a convertible bond issued by GoTech Corp which has a conversion ratio of 20 common shares for each $1,000 bond. a. At

7. You bought a convertible bond issued by GoTech Corp which has a conversion ratio of 20 common shares for each $1,000 bond.

a. At what stock price per share would you make a profit (in the money) if you bought the bond at par?

b. What would you expect the bond to sell for in the market if the stock trades at $61 per share?

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