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A convertible bond pays interest annually ot a coupon rate of 4 percent on a par value of $1,000. The bond has 5 years maturity

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A convertible bond pays interest annually ot a coupon rate of 4 percent on a par value of $1,000. The bond has 5 years maturity remaining and the discount rate on otherwise identical non-convertible debt is 7 percent. The bond is convertble into 50 shares of common stock. Today's closing stock price was $18. What is the floor value of this bond? Mutiple Choice: 5880 5900 51.050 $800 $1000

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