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Kona'sSalami Company issued debentures with a $1,000 par which are also convertible to common stock at a price of $25 per share. The debentures have

Kona'sSalami Company issued debentures with a $1,000 par which are also convertible to common stock at a price of $25 per share. The debentures have a coupon of8% with a maturity 20 years from now.

The straight debt of equivalent risk is yielding 10% today. The common stock is trading at $23 per share today

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