The following data applies to Saunders Corporation's convertible bonds: Maturity............. 10 Stock price ............ $30.00 Par value.............$1,000.00

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The following data applies to Saunders Corporation's convertible bonds:
Maturity............. 10
Stock price ............ $30.00
Par value.............$1,000.00
Conversion price.......... $35.00
Annual coupon........... 5.00%
Straight-debt yield......... 8.00%
What is the bond's straight-debt value
(a) $684.78
(b) $720.82
(c) $758.76
(d) $798.70
(e) $838.63

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Related Book For  answer-question

Essentials of Investments

ISBN: 978-0077835422

10th edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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