The Conversion Value of a Convertible Bond Is Equal to Which

question 94

Multiple Choice

The conversion value of a convertible bond is equal to which one of the following?

• A)Conversion ratio × Stock price
• B)Conversion ratio × Conversion price
• C)Face value of the bond/Conversion premium
• D)Face value of the bond × (1 + Conversion premium)
• E)Stock price × (1 + Conversion ratio)

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