Bavarian Brew issued convertible bonds with a par value of $1,000.The conversion ratio on the bonds is 12.33,the current market price of the bonds is $933.75 and the underlying stock currently sells at $45.25.What is the conversion premium?
A) 66.48%
B) 45.25%
C) 74.67%
D) 27.58%
Correct Answer:
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