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A Safeco Corporation bond that is otherwise identical to the callable 5.5% coupon bond described above, is also convertible into 10 shares of Safeco
A Safeco Corporation bond that is otherwise identical to the callable 5.5% coupon bond described above, is also convertible into 10 shares of Safeco stock at any time up to the bond's maturity. If its yield to maturity is currently 3.5% per year, what is the implied value of the conversion feature?
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Personal Finance Turning Money into Wealth
Authors: Arthur J. Keown
7th edition
978-0133856507, 013385650X, 133856437, 978-0133856439
