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With a Conversion Ratio of 25 a $1000 Convertible Bond

Question 18

Multiple Choice

With a conversion ratio of 25 a $1000 convertible bond will be converted


A) at the option of the company.
B) at a conversion price of at least $25.
C) if the stock price moves considerably above $40.
D) at any stock price below $40.

Correct Answer:

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