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In the federal system, probation officers create PSIs.
Convertible Bond
A fixed-income debt security that the holder can convert into a specified number of shares of common stock in the issuing company.
Conversion Price
The dollar amount of a bond’s par value that is exchangeable for one share of stock.
Conversion Value
The value of a convertible security if it were converted into a different asset, typically shares of the issuing company's stock.
Risk-Free Rate
The theoretical rate of return of an investment with zero risk, typically represented by the yield on government securities.
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