A firm issues the convertible debt shown above. The price of stock in this company on July 1, 2008 is $15.14. What is the minimum call price that would make a bondholder prefer to accept the call rather than convert?
A) par plus 3.29%
B) par plus 3.89%
C) par plus 4.49%
D) par plus 5.98%
Correct Answer:
Verified
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