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An 8% convertible bond carries a part value of $1,000 and a conversion ratio of 50. The bond is currently trading at $850. The stock

An 8% convertible bond carries a part value of $1,000 and a conversion ratio of 50. The bond is currently trading at $850. The stock is currently priced in the market at $15 a share.

a. What is the bonds conversion price?

b. What is the conversion value of the issue?

c. What is the conversion premium, in dollars?

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