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A convertible bond has the following characteristics: Principal = $ 1 , 0 0 0 Coupon: 5 . 5 % Maturity: 1 5 years Call
A convertible bond has the following characteristics:
Principal $
Coupon:
Maturity: years
Call price: $
Conversion price: $or shares
Market price of the common stock: $
Market price of the bond: $
What is the value of the common stock based on the market price of the bond?
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