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The following facts apply to a convertible bond making semiannual payments: Conversion price $53/share Coupon rate 6% Par value $1,000 Yield on nonconvertible debentures 8%

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The following facts apply to a convertible bond making semiannual payments: Conversion price $53/share Coupon rate 6% Par value $1,000 Yield on nonconvertible debentures 8% of same quality Maturity 30 years $43 /share Market price of stock What is the minimum price at which the convertible should sell

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