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Assume that a convertible bond issued by a company has a par value of $1,000 and is currently priced at $1,010. The underlying stock price
- Assume that a convertible bond issued by a company has a par value of $1,000 and is currently priced at $1,010. The underlying stock price is $40 and the conversion ratio is 25:1. (i) What is the conversion value for the bond? (ii) What is the conversion premium for the bond?
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
9th Edition
0814408648, 978-0814408643
