The SXX Corporation offers to exchange $42 1/2 million of a $75 1/2 million, 4 1/2 % bond of 2020 which is currently quoted at 55 and is convertible to 25 shares of common, for a 4 1/2% nonconvertible of 2029, plus some cash. The common stock pays $1.60 per share and is selling at 20.75. The current yield on the bond is:
O 20.5%
O 4.7%
O 4.25%
O 4.5%
