(Answered) The following data applies to saunders corporations

Finance

The following data applies to Saunders Corporation's convertible bonds:

Maturity............. 10

Stock price ............ $30.00

Par value.............$1,000.00

Conversion price.......... $35.00

Annual coupon........... 5.00%

Straight-debt yield......... 8.00%

What is the bond's straight-debt value

(a) $684.78

(b) $720.82

(d) $798.70

(e) $838.63

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