The Conversion Premium Is Defined as Which of the Following

question 24

Multiple Choice

The conversion premium is defined as which of the following?

• A)The number of shares that a convertible security can be exchanged for.
• B)The price at which a convertible security can be converted into common shares.
• C)The value of a convertible security if it is immediately converted into common shares.
• D)The percentage difference between the value at which the bonds are trading and their conversion value.

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Definitions:

Dial Caliper

A mechanical measuring caliper with a rotary display scale.

Component Measuring

The process of precisely determining the dimensions, capacity, or amount of various components or parts in manufacturing or engineering.

Posi-Drive Screw

A type of screw designed with a unique drive system that reduces the risk of cam-out and increases the efficiency of torque transmission.

Phillips Screw

A type of screw with a cross-shaped slot on its head, designed by Henry F. Phillips.