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Marcus, Inc. has convertible bonds. Interest is paid annually. Use the data below to determine the conversion value of each bond. Round to the nearest

Marcus, Inc. has convertible bonds. Interest is paid annually. Use the data below to determine the conversion value of each bond. Round to the nearest whole dollar.

Maturity: 10 years
Stock price: $35.00
Par value: $1,000
Conversion price: $40
Annual coupon: 9%
Straight debt yield: 11%

$875
$950
$961
$1,000
None of the above

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