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The following facts apply to a convertible bond making semiannual payments: Conversion price $33/share Coupon rate 6.5% Par value $1,000 Yield on nonconvertible debentures of

The following facts apply to a convertible bond making semiannual payments:

Conversion price $33/share

Coupon rate 6.5%

Par value $1,000

Yield on nonconvertible debentures of same quality 9.5%

Maturity 15 years

Market price of stock $27 /share

What is the minimum price at which the convertible should sell?

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