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You are the manager of a local flower shop and you compete with one other flower shop in your area. You estimate the cross- price elasticity of demand between your flowers and your competitor's flowers to be 2.60. If your competitor increases the price of her flowers by 4 percent, you should expect which of the following?
Yield To Maturity
The total return anticipated on a bond if it is held until its maturity date, taking into account its current market price, par value, coupon interest rate, and time to maturity.
Par Value
The stated value of a bond, stock share, or coupon as specified by the issuer.
Conversion Premium
The additional amount over the current value that an investor pays to convert a convertible security into a specified number of shares of common stock.
Conversion Ratio
The specific quantity of common shares an investor can receive for converting each unit of a convertible security, such as a convertible bond or preferred stock.
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