Multiple Part: The next 4 problems must be kept together; all use the data in Exhibit 20.1. ? Exhibit 20.1 ? The following data apply to Saunders Corporation's convertible bonds:  Maturity13  Stock price $34.00 Par value $1,000  Conversion price $43.00Annual coupon 5.20%  Straight-debt yield 9.80% Refer to Exhibit 20.1. What is the bond's straight-debt value at the time of issue?

A. $703.32
B. $535.87
C. $502.37
D. $669.83
E. $803.80


Answer: D

Business

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