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The following data apply to Saunders Corporation's convertible bonds: Maturity 13 Stock price $34.00 Par value $1,000 Conversion price $43.00 Annual coupon 5.20% Straight-debt yield
The following data apply to Saunders Corporation's convertible bonds:
| Maturity | 13 | Stock price | $34.00 | |
| Par value | $1,000 | Conversion price | $43.00 | |
| Annual coupon | 5.20% | Straight-debt yield | 9.80% |
Refer to Exhibit 20.1. What is the bond's straight-debt value at the time of issue?
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