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The following facts apply to a convertible bond making semiannal payments: Conversion price $49/share Coupon rate 8% Par value $1,000 Yield on nonconvertible debentures 11.5%

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The following facts apply to a convertible bond making semiannal payments: Conversion price $49/share Coupon rate 8% Par value $1,000 Yield on nonconvertible debentures 11.5% of same quality Maturity 30 years $42 /share Market price of stock What is the minimum price at which the convertible should sell? Multiple Choice 14 of 20 $706.28 O $857.14 O $1,000.00 Prev # Next >

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