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A registered representative's (RR's) customer is looking for an investment other than mutual funds that will provide income and possible capital appreciation. The RR recommends
A registered representative's (RR's) customer is looking for an investment other than mutual funds that will provide income and possible capital appreciation. The RR recommends an 8% convertible bond. The bond is convertible into the issuing company's common stock at a conversion price of $20 per share. The bond is quoted at $120, and the common stock is trading at $26. What is the parity of the common stock?
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