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The following data applies to Neuman Corporation convertible bonds: Maturity: 10 Valor nominal: $1,000.00 Annual Coupon: 5.00% Stock Price: $30.00 Conversion Price: $35.00 Simple debt

The following data applies to Neuman Corporation convertible bonds:

Maturity: 10

Valor nominal: $1,000.00

Annual Coupon: 5.00%

Stock Price: $30.00

Conversion Price: $35.00

Simple debt yield: 8.00%

a) What is the conversion ratio of the bond?

B) What is the conversion value of the bond?

c) What is the value of the direct debt of the bond?

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