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An investor owns a 15-year convertible bond that carries a 6% coupon rate and a $1,000 face value. The bond can be exchanged for
An investor owns a 15-year convertible bond that carries a 6% coupon rate and a $1,000 face value. The bond can be exchanged for 40 shares of stock that has a current market value of $24. Similar nonconvertible bonds have a yield to maturity of 6.5%. The minimum value of the bond is closest to: a. $952.99. b. $960.00. c. $1,000.00. d. $1,116.03.
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
7th Edition
013213683X, 978-0132136839
