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12- The floor or pure bond value of a convertible bond is found by multiplying the price of the firm's common stock by the conversion
12- The "floor" or pure bond value of a convertible bond is found by
- multiplying the price of the firm's common stock by the conversion ratio and adding the present value of the bond's face value.
- adding the present value of the bond's interest payments to the present value of the bond's face value.
- multiplying the bond's conversion premium by the price of the firm's common stock
- multiplying the price of the firm's common stock by the conversion ratio.
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
