Exhibit 20 -Refer to Exhibit 20

question 38

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 minimum price (or "floor" price) at which the Saunders' bonds should sell?

• A) $669.83
• B) $632.56
• C) $830.23
• D) $869.77
• E) $790.70

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Definitions:

Personality Development

The process of developing the organized pattern of behaviors and attitudes that makes a person distinctive over time.

Objective Methods

Techniques or procedures that are based on factual and measurable data, used to obtain unbiased results.

Psychoanalytic Theory

A theory of personality development and therapeutic framework that emphasizes unconscious motives and conflicts, developed by Sigmund Freud.

Humanist Theory

A psychological perspective that emphasizes the study of the whole person and the uniqueness of each individual, often associated with concepts of free will and self-actualization.