Multiple Choice
The conversion value of a convertible bond is computed as the:
A) Conversion ratio multiplied by the price of the stock.
B) Conversion ratio multiplied by the conversion price.
C) Face value of the bond plus the conversion premium.
D) Face value of the bond multiplied by (1 + conversion premium) .
E) Face value of the bond multiplied by (1 + conversion price) .
Correct Answer:
Verified
Correct Answer:
Verified
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