A Convertible Bond Has a Par Value of $1,000 and a Current

question 26

Multiple Choice

A convertible bond has a par value of $1,000 and a current market value of $150.The current price of the issuing firm's stock is $65 and the conversion ratio is 15 shares.The bond's conversion premium is

• A)$40.
• B)$150.
• C)$175.
• D)$200.

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