What Is the Percentage Conversion Premium of a Convertible Bond

question 10

Multiple Choice

What is the percentage conversion premium of a convertible bond with market value of $900, conversion value of $800, and par value of $1,000?

• A)25%
• B)20%
• C)12.5%
• D)10.5%

---

Definitions:

Domesticating

The process of adapting wild plants and animals for human use, making them more suitable for farming, companionship, or as work animals.

Horticultural

Pertains to the art or practice of garden cultivation and management.

Surplus Production

The production of goods or services in quantities greater than needed for personal or local consumption, allowing for trade.

Primary Mode

The most prominent or frequently used method or form of something, particularly in the context of transportation or production.