Determine the minimum price of the bond


M&E Inc. has an outstanding convertible bond. The bond can be converted into 20 shares of common equity (currently trading at $52/share). The bond has 5 years of remaining maturity, a $1,000 par value, and a 6% annual coupon. M&E's straight debt is currently trading to yield 5%. What is the minimum price of the bond?

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Finance Basics: Determine the minimum price of the bond
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