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A Company Has a Convertible Bond with a Conversion Price

Question 51

Multiple Choice

A company has a convertible bond with a conversion price of $27 per share. The company's common stock is currently trading at $23 per share. What is the conversion value of the bond (rounded to whole dollars) ?


A) $1,000
B) $800
C) $852
D) $828

Correct Answer:

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