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Suppose you are evaluating a bond that can be exchanged for shares of the issuing company's stock at a conversion price of $5 per share.

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Suppose you are evaluating a bond that can be exchanged for shares of the issuing company's stock at a conversion price of $5 per share. The bond has a $50 annual coupon, five years to maturity, and straight debt of the same risk is priced to yield 8%. The current share price for the issuing firm is $4.50. What is the minimum value for which the bond should sell? Multiple Choice $921.12 O $1,000.00 $848.37 O $900.00 $880.22

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