What is the minimum price (or “floor” price) at which the Neuman’s bonds should sell? If the following is true:
Years to maturity:10Stock price:$30.00
Par value:$1,000.00Conversion price:$35.00
Annual coupon:5.00%Straight-debt yield:8.00%
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What is the minimum price (or “floor” price) at which the Neuman’s bonds should sell? If the following is true:
Years to maturity:10Stock price:$30.00
Par value:$1,000.00Conversion price:$35.00
Annual coupon:5.00%Straight-debt yield:8.00%