9 Instead of issuing warrants with its bond issue, a company issues convertible bonds. Similar bonds without

Question:

9 Instead of issuing warrants with its bond issue, a company issues convertible bonds. Similar bonds without the conversion privilege sell for €75 each. An option pricing formula
indicates that the conversion privilege, treated as an option, would be worth €25 each.
At what price can the company expect to sell the convertibles?

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