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A convertible bond has a face value of $1,000 and a conversion price of $35. The bond has a 9 percent coupon and pays interest

A convertible bond has a face value of $1,000 and a conversion price of $35. The bond has a 9 percent coupon and pays interest semi-annually. The bond matures in 7 years. Similar bonds are yielding 8.5 percent. The current price of the stock is $36.30. What is the conversion value of this bond?

A. $989.16

B. $1,000.00

C. $1,025.98

D. $1,037.14

E. $1,041.07

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