5) The following facts apply to a convertible bond making semiannual payments: Conversion price $...
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5) The following facts apply to a convertible bond making semiannual payments: Conversion price $ 44 /share Coupon rate 6 % Par value $ 1,000 Yield on nonconvertible debentures of same quality 7 % Maturity 20 years Market price of stock $ 43 /share What is the minimum price at which the convertible should sell? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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