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please help You have been hired to value a new 20-year, callable, convertible bond. The bond has a 6.10 percent coupon rate, payable annually. The
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You have been hired to value a new 20-year, callable, convertible bond. The bond has a 6.10 percent coupon rate, payable annually. The conversion price is $154, and the stock currently sells for $49.50. The stock peice is expected to grow at 12 percent per year. The bond is callable at $1,290, but based on prior experience. It won't be called unless the comversion value is $1,390. The required return on this bond is 9 percent. What value would you assign to this bond? (Do not round intermediate calculations. Aound the final answer to 2 decimal places, Omit $ sign in your response.) Bond value Step by Step Solution
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