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Beck Cow (BC) has a convertible bond issue outstanding. Each $1000 in bond outstanding can be convened into 25 common shares. BC's convertible bonds have

Beck Cow (BC) has a convertible bond issue outstanding. Each $1000 in bond

outstanding can be convened into 25 common shares. BC's convertible bonds have a

coupon of 5% paid annually and mature in 20 years BC's common stock is currently

trading at S38 a share and its convertible bonds are trading at $1,100.

If bonds of similar risk are yielding 4% what is the pure bond value of BC's convertible bonds?

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