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Sketch the graph of the equation .
Conversion Price
The predetermined price at which convertible securities can be converted into common stock.
Conversion Ratio
A ratio set at the time bonds are issued; determines the number of shares that can be exchanged for a bond.
Bond Rating
An evaluation made by credit rating agencies regarding the credit worthiness of a corporation's or government's debt issues, reflecting the likelihood of default.
Yield To Maturity
The total expected return on a bond if held to its maturity date, taking into account both interest payments and capital gains or losses.
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