A 5.25% ABC bond is convertible into 50 shares of common stock for each $1,000 of face value. Which of the following statements about the ABC convertible is true? a) If the common stock is trading at $25 a share, the ABC convertible acts like a straight debenture. Ob) If the common stock is trading at $20 a share, the premium on the ABC convertible will equal $52.50. c) If the common stock is currently trading at $22 a share, the ABC convertible bond will rise to a price of at least $110. d) If the common stock is currently trading at $20 a share, the ABC convertible is selling below its conversion value. Pred us Page Next Page Page 31 of 34