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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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