Multiple Choice
What is the value of a convertible bond with a conversion ratio of 25, face value of $1,000, coupon rate of 10%, and yield to maturity of 10%? Common stock of this firm is currently selling at $35.
A) $875
B) $1,000
C) $1,125
D) $1,875
Correct Answer:
Verified
Correct Answer:
Verified
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