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Orient Airlines' common stock currently sells for $ 3 1 , and its 1 0 - year maturity convertible bond with 8 . 5 %
Orient Airlines' common stock currently sells for $ and its year maturity convertible bond with
coupon rate paid semiannually has a yield to maturity of Each bond can be converted
into shares of common stock at any time before five years from now. Assuming its stock price is
expected to grow at every year, show with calculations whether bondholders of this convertible
bond more likely to convert the bond into common stock today? Show your calculations to support
your answers to earn full points
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