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A convertible bond is selling for $1300. The conversion ratio is 40. The stock currently sells for $30.13 a share. Per share conversion option value

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A convertible bond is selling for $1300. The conversion ratio is 40. The stock currently sells for $30.13 a share. Per share conversion option value is $10. The bond has 10 years till maturity, face value of $1,000, and annual interest payments. Similar non-convertible bonds are priced to yield 10 percent.What should be the coupon rate for the convertible bond

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