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A Convertible Bond Has a Par Value of $1,000, but Its

Question 23

Multiple Choice

A convertible bond has a par value of $1,000, but its current market price is $950. The current price of the issuing company's stock is $19, and the conversion ratio is 40 shares. The bond's conversion premium is ________.


A) $50
B) $190
C) $200
D) $240

Correct Answer:

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