Multiple Choice
A convertible bond is valued at $1,062,has a conversion ratio of 25,and an option premium of $3.What is the conversion value if the straight bond value is equal to the bond's par value?
A) $1,062.00
B) $1,042.36
C) $1,059.00
D) $1,042.48
E) $1,065.00
Correct Answer:
Verified
Correct Answer:
Verified
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