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A Firm Issues the Convertible Debt Shown Above

Question 89

Multiple Choice

A firm issues the convertible debt shown above.The price of stock in this company on July 1,2008 is $14.40.What is the minimum call price that would make a bondholder prefer to accept the call rather than convert? A) par plus 6.66% B) par plus 7.50% C) par plus 8.46% D) par plus 12.32% E) par plus 15.00% A firm issues the convertible debt shown above.The price of stock in this company on July 1,2008 is $14.40.What is the minimum call price that would make a bondholder prefer to accept the call rather than convert?


A) par plus 6.66%
B) par plus 7.50%
C) par plus 8.46%
D) par plus 12.32%
E) par plus 15.00%

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