Information concerning a convertible bond

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Given the following information concerning a convertible bond:

Principal: $ 1,000 Coupon: 4% Maturity: 20 years
Call price: $ 1,030 Conversion price: $ 25
Market Price of common stock $ 19.00 Market Price of Bond $ 1,020.

A) What is the value of the common stock based on the market price of the bond?

Reference no: EM13973864

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