Exhibit 20 -Refer to Exhibit 20

question 40

Multiple Choice

Exhibit 20.1
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The following data apply to Saunders Corporation's convertible bonds: $\begin{array}{lrlr}\text { Maturity } & 13 & \text { Stock price } & \$ 34.00 \\\text { Par value } & \$ 1,000 & \text { Conversion price } & \$ 43.00 \\\text { Annual coupon } & 5.20 \% & \text { Straight-debt yield } & 9.80 \%\end{array}$
-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

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Definitions:

Entrepreneurs

Individuals who initiate, manage, and assume the risks of a business venture in pursuit of profit and innovation.

Experiences

Events or occurrences that leave an impression on someone, often contributing to their knowledge or skill set.

Angel Investor

A wealthy individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity.

Debt Financing

The process of raising operational funds or capital by borrowing, which typically involves the issuance of bonds, bills, or notes payable to lenders.