Multiple Choice
If a $1,000 convertible bond has a conversion ratio of 50 and the firm's equity is currently selling for $22 per share, then the:
A) bond should trade for $900.
B) bond should trade for $1,000.
C) bond should trade for $1,100.
D) firm will have already converted the bond.
Correct Answer:
Verified
Correct Answer:
Verified
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