What is the minimum bond value for xyz inc

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Question 1: XYZ Inc. has issued convertible bonds that mature in 15 years. The bonds have a coupon rate of 9.0% percent paid semi-annually, a face value of $1,000 and a conversion price of $26. Similar bonds have a current market return of 8.0 percent. The current price of the company's stock is $28 per share. What is the minimum bond value?

Reference no: EM132869553

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