Exhibit 20.1

The following data apply to Neuman Corporation's convertible bonds:

Maturity:10

Stock price:$30.00

Par value:$1,000.00

Conversion price:$35.00

Annual coupon:5.00%

Straight-debt yield:8.00%

Refer to Exhibit 20.1. What is the minimum price (or "floor" price) at which the Neuman's bonds should sell?

a) $698.15

b) $734.89

c) $773.57

d) $814.29

e) $857.14