The following facts apply to a convertible bond making semiannual payments: Conversion price $ 39 /share Coupon rate 2.8 % Par value $ 1,000 Yield on nonconvertible

The following facts apply to a convertible bond making semiannual payments:

Conversion price $ 39 /share

Coupon rate 2.8 %

Par value $ 1,000

Yield on nonconvertible debentures of same quality 3 %

Maturity 20 years

Market price of stock $ 38 /share

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a.

What is the minimum price at which the convertible should sell? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

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