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The Holders of Xenron Corporation's Bond with a Face Value

Question 29

Multiple Choice

The holders of Xenron Corporation's bond with a face value of €1,000 can exchange that bond for 35 shares of equity.The equity is selling for €22.00.What is the conversion value of the bond?


A) €25
B) €40
C) €770
D) €1,000
E) No conversion premium is given.

Correct Answer:

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