Crystal Cafes recently sold a $500 par-value, 15-year convertible bond with an 13.0% 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 14.7% coupon interest rate. What is the minimum price that the Crystal Cafes' convertible bond should sell for?

1. The minimum price that the Crystal Cafes' convertible bond should sell for is?

Crystal Cafes recently sold a $500-par-value, 15-year convertible bond with an 13.0% 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 14.7% coupon interest rate. What is the minimum price that the Crystal Cafes' convertible bond should sell for? The minimum price that the Crystal Cafes' convertible bond should sell for is $ . (Round to the nearest cent.)