A convertible bond has a 5 percent coupon, paid semiannually, and will mature in 10 years. If

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A convertible bond has a 5 percent coupon, paid semiannually, and will mature in 10 years. If the bond were not convertible, it would be priced to yield 4 percent. The conversion ratio on the bond is 25 and the stock is currently selling for $49 per share. What is the minimum value of this bond?

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