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kamath industries wants to retire its convertible bonds. These $1000 par value bonds have a call price of $1050 and a 10 to 1 conversation
kamath industries wants to retire its convertible bonds. These $1000 par value bonds have a call price of $1050 and a 10 to 1 conversation ratio. Assuming zero premium, would it be better for kamath to buy the bonds back in the open market or exercise the call option if theprice of common stock is as follows?
a. $100
b.$90
c.$120
d.$105
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