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Orient Airlines' Common Stock Currently Sells for $33, and Its

Question 25

Multiple Choice

Orient Airlines' common stock currently sells for $33, and its 8% convertible debentures (issued at par, or $1,000) sell for $850. Each debenture can be converted into 25 shares of common stock at any time before 2020. What is the conversion value of the bond?


A) $707.33
B) $744.56
C) $783.75
D) $825.00
E) $866.25

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