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The Conversion Price Parity for a Convertible Bond Is Defined

Question 10

Multiple Choice

The conversion price parity for a convertible bond is defined as


A) market price of convertible bond/conversion ratio.
B) market price of convertible bond x conversion ratio.
C) market price of convertible bond − conversion ratio.
D) market price of convertible bond + conversion ratio.
E) none of the above.

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