What is the bonds straight-debt value a 68478 b 72082 c


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

(c) $758.76

(d) $798.70

(e) $838.63

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Finance Basics: What is the bonds straight-debt value a 68478 b 72082 c
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