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The firm you are analyzing has $ 9 0 million in face value of convertible debt with a stated interest rate of 7 % ,

The firm you are analyzing has $90 million in face value of convertible debt with a stated interest rate of 7%, a 10-year maturity and a market value of $110 million. If the firm has a bond rating of A and the interest rate on A-rated straight bond is 8%, how much should you adjust Debt by? Equity?

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