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What is the bond straight-debt value

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Neuman Corporation Convertible Bonds

The following data apply to Neuman 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%

Problem 1: Refer to the data for the Neuman Corporation's convertible bonds. What is the bond's straight-debt value?

Option a. $758.76

Option b. $798.70

Option c. $684.78

Option d. $838.63

Option e. $720.82

Reference no: EM132613723

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