Neuman Corporation Convertible Bonds
the Following Data Apply to Neuman

question 25

Multiple Choice

Neuman Corporation Convertible Bonds
The following data apply to Neuman Corporation's convertible bonds:
$\begin{array}{lcc}\text { Maturity: } & \text { 10Stock price: } & \$ 30.00 \\\text { Par value: } & \$ 1,000.00 \text { Conversion price: } & \$ 35.00 \\\text { Annual coupon: } & 5.00 \% \text { Straight-debt yield: } & 8.00 \%\end{array}$
-Refer to the data for the Neuman Corporation's convertible bonds.What is the bond's conversion value?

• A) $698.15
• B) $734.89
• C) $773.57
• D) $814.29
• E) $857.14

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Definitions:

Separate-but-equal Doctrine

A legal principle that justified racial segregation, claiming that separate facilities for blacks and whites were constitutional if they were equal in quality; declared unconstitutional by Brown v. Board of Education (1954).

Equal Protection Clause

A provision in the Fourteenth Amendment to the U.S. Constitution prohibiting states from denying any person within its jurisdiction the equal protection of the laws.

Emancipation Proclamation

An executive order issued by President Abraham Lincoln in 1863 that declared the freedom of all slaves in Confederate-held territory during the American Civil War.

Abraham Lincoln

A 16th President of the United States who led the country through its Civil War and helped to abolish slavery.