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Crystal Cafes recently sold a $2,000 par value, 10 year convertible bond with an 8% coupon interest rate. The interest payments will be paid annually
Crystal Cafes recently sold a $2,000 par value, 10 year convertible bond with an 8% coupon interest rate. The interest payments will be paid annually at the end of each year and the principal will be repaid at maturity. A similar bond without a conversion feature would have sold with a 9% coupon interest rate. What is the minimum price that the Crystal Cafes convertible bond should sell for?
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