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You purchase a $1,000 face value convertible bond for $975. The bond can be converted into 125 shares of stock. The stock is currently priced
You purchase a $1,000 face value convertible bond for $975. The bond can be converted into 125 shares of stock. The stock is currently priced at $5.25. At what minimum stock price would you be willing to convert?
a. 7.8
b. 8.0
c. 6.5
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