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A Firm Issues the Convertible Debt Shown Above

Question 82

Multiple Choice

A firm issues the convertible debt shown above. The price of stock in this company on July 1, 2008 is $37.57. What is the minimum call price that would make a bondholder prefer to accept the call rather than convert? A) par B) par plus 7.5% C) par plus 9.7% D) par plus 11.2% A firm issues the convertible debt shown above. The price of stock in this company on July 1, 2008 is $37.57. What is the minimum call price that would make a bondholder prefer to accept the call rather than convert?


A) par
B) par plus 7.5%
C) par plus 9.7%
D) par plus 11.2%

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