Problem
Neuman Corporation Convertible Bonds
The following data apply to Neuman Corporation's convertible bonds:
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Maturity:
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10
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Stock price:
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$30.00
|
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Par value:
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$1,000.00
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Conversion price:
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$35.00
|
|
Annual coupon:
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5.00%
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Straight-debt yield:
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8.00%
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Refer to the data for the Neuman Corporation's convertible bonds. What is the bond's conversion ratio?