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Refer to the graph shown. At which point is elasticity infinite?
Common Stock
A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's profits or losses.
Convertible Bond
A financial instrument that can be converted by the bondholder into a predetermined quantity of the issuer's company shares at certain intervals throughout the bond's life, generally at the bondholder's discretion.
Straight Bond Value
The value of a bond without any embedded options; it pays fixed interest and returns the principal at maturity.
Conversion Value
The value of a convertible security if it is currently converted into the number of shares that the security is worth according to its conversion terms.
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