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Suppose you have a 9% bond that pays semiannual coupons and will mature in 30 years. The face value is $1,000, and the yield to

Suppose you have a 9% bond that pays semiannual coupons and will mature in 30 years. The face value is $1,000, and the yield to maturity on similar bonds is 7%. The bond is also convertible with a conversion price of $92. The stock is currently selling for $108. a. What is the conversion value? b. What is the minimum price the bond should be selling for?

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