22. A convertible bond pays annual coupons, has a coupon rate of 8 percent,
and matures in 15 years. The face value is S1,000 and the conversion
ratio is 45. The stock currently sells for $20.2 a share. Similar
nonconvertible bonds are priced to yield 9 percent. What is the minimal
value of the convertible bond?
(A) $895.2
(B)$912.1
(C)$1,000
(D)$919.4
(E) $909.0
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