What is the straight-debt value of the bond at the time

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Reference no: EM13275014

Herring Inc. is considering issuing 15-year, 7.5% semiannual coupon, $1,000 face value convertible bonds at a price of $1,000 each. Each bond would be convertible into 25 shares of common stock. If the bonds were not convertible, investors would require an annual nominal yield of 10%. What is the straight-debt value of the bond at the time of issue?

Reference no: EM13275014

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