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  3. the following facts apply to a convertible bond ma

The following facts apply to a convertible bond making semiannual payments: ...

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Finance

The following facts apply to a convertible bond making semiannual payments:

Conversion price $36/share
Coupon rate 5%
Par value $1,000
Yield on nonconvertible debentures of same quality 7%
Maturity 20 years
Market price of stock $29 /share

What is the minimum price at which the convertible should sell?

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