A convertible bond whose conversion price is well under the current price is a common stock equivalent.

Name: A convertible bond whose conversion price is well under the current price is a common stock equivalent.
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A convertible bond with a conversion price significantly below the current market price of the stock is considered "in the money," making it likely to be converted into stock and thus treated as a common stock equivalent for financial analysis and reporting purposes.

A Convertible Bond Whose Conversion Price Is Well Under the Current