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The following facts apply to a convertible bond making semiannual payments: Conversion price Coupon rate Par value Yield on nonconvertible debentures of same quality Maturity

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The following facts apply to a convertible bond making semiannual payments: Conversion price Coupon rate Par value Yield on nonconvertible debentures of same quality Maturity Market price of stock $40/share 6.5% $1,000 8% 10 years $39 /share What is the minimum price at which the convertible should sell? Multiple Choice $1,000.00 $955.50 $975.00 $898.07 $936.00

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