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The following facts apply to a convertible bond making semiannual payments: Conversion price $38/share Coupon rate 7.5% Par value $1,000 Yield on nonconvertible debentures of

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The following facts apply to a convertible bond making semiannual payments: Conversion price $38/share Coupon rate 7.5% Par value $1,000 Yield on nonconvertible debentures of same quality 9.5% Maturity 20 years Market price of stock $37 /share What is the minimum price at which the convertible should sell? None of these choices $973.68 $822.37 $954.21 $1000.00

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