Question: Crystal Cafes recently sold a $2,000-par-value, 10-year convertible bond with an 8% coupon interest rate. The interest payments will be paid annually at the end

Crystal Cafes recently sold a $2,000-par-value, 10-year convertible bond with an 8% coupon interest rate. The interest payments will be paid annually at the end of each year and the principal will be repaid at maturity. A similar bond without a conversion feature would have sold with a 9% coupon interest rate. What is the minimum price that the Crystal Cafes’ convertible bond should sell for?

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