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Alicia Owns a $1,000 Face Value Bond That Can Be

Question 88

Multiple Choice

Alicia owns a $1,000 face value bond that can be converted into 20 shares of AB Limited stock. Which one of the following terms refers to these 20 shares?


A) Conversion premium
B) Straight bond value
C) Conversion value
D) Conversion price
E) Conversion ratio

Correct Answer:

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