Lynd Corporation common stock currently sells for $30, and its 8-year maturity convertible bond with...
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- Lynd Corporation common stock currently sells for $30, and its 8-year maturity convertible bond with 4% annual coupon rate paid semi-annually has a yield to maturity of 3%. Each bond can be converted into 35 shares of common stock at any time before its maturity. Assuming stock price grows at a constant rate of 10%, are bondholders convert their bond into common stock today? Show your calculation to support your conclusion to receive full points (4 points)
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