Van Gogh Furniture has issued a zero-coupon 10-year bond that can be converted into 10 Van Gogh
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Van Gogh Furniture has issued a zero-coupon 10-year bond that can be converted into 10 Van Gogh shares. Comparable nonconvertible bonds are yielding 8%. Van Gogh stock is priced at $50 a share. If you had to make a now-or-never decision on whether to convert or stay with the bond, which would you do?
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Akshay Agarwal
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-1259722615
9th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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