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Kanasca Canada Ltd. issued convertible bonds with face value of $1000 and a conversion price of $40 while its common shares were trading at $30.

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Kanasca Canada Ltd. issued convertible bonds with face value of $1000 and a conversion price of $40 while its common shares were trading at $30. One year later, its share price increased to $45. Was the bond in the money, out of the money, or at the money? How much is the investors' gain (if there is any) from holding one bond with the new stock price? a. Out of the money; $5 O b. In the money; $5 O c. At the money; $5 O d. In the money; $125 e. Out of money: $125

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