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The following facts apply to a convertible bond making semiannual payments: Conversion price $54/share Coupon Rate 7% Par value $1,000 Yield on nonconvertible debentures of

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

Conversion price $54/share

Coupon Rate 7%

Par value $1,000

Yield on nonconvertible debentures of same quality 8.5%

Maturity 15 Years

Market Price of Stock $50/ Share

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

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