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The Maximum Value of a Convertible Bond Is Theoretically

Question 114

Multiple Choice

The maximum value of a convertible bond is theoretically:


A) Equal to the conversion value minus the straight bond value.
B) Equal to the face value of the bond multiplied by (1 + conversion price) .
C) Limited to the maximum straight bond value.
D) Limited by the face value of the bond.
E) Unlimited.

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