The Conversion Premium for a Convertible Bond Is Calculated As

question 9

Multiple Choice

The conversion premium for a convertible bond is calculated as:

• A) (Market Price + Minimum Value)/Minimum Value.
• B) (Market Price/Minimum Value) × Minimum Value.
• C) (Market Price + Minimum Value) × Minimum Value.
• D) (Market Price - Minimum Value)/Minimum Value.
• E) (Market Price × Minimum Value)/Minimum Value.

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