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A convertible bond has a par value of $ 1 , 0 0 0 and a current market value of $ 8 5 0 .

A convertible bond has a par value of $1,000 and a current market value of $850. The current price of the issuing firm's stock is $27, and the conversion ratio is 30 shares. The bond's conversion premium is
a. $40.
b. $150.
c. $190.
d. $200.
e. None of the options are correct.

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