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The following facts apply to a convertible bond making semiannual payments: $48/share 8.5% $1,000 Conversion price Coupon rate Par value Yield on nonconvertible debentures of

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The following facts apply to a convertible bond making semiannual payments: $48/share 8.5% $1,000 Conversion price Coupon rate Par value Yield on nonconvertible debentures of same quality Maturity Market price of stock 11.5% 10 years $43 /share What is the minimum price at which the convertible should sell? Multiple Choice $877.92 $1,000.00 $860.00 $824.40 $895.83

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