The Harter Corporation has issued bonds with a face value of $4,000,000 that are convertible on a

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The Harter Corporation has issued bonds with a face value of $4,000,000 that are convertible on a 50:1 basis (50 shares of common stock for one bond) and have a call price of 104. Describe the cash flows if the bonds are called when their carrying (book) value is $3,900,000. Describe the cash flows if the bonds are instead converted to common stock.

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