The conversion ratio on the bond

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Reference no: EM13952187

A convertible bond has a 8 percent coupon, paid semiannually, and will mature in 20 years. If the bond were not convertible, it would be priced to yield 7 percent. The conversion ratio on the bond is 20 and the stock is currently selling for $53 per share. What is the minimum value of this bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Reference no: EM13952187

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