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Question 10 Certain callable convertible debentures are issued at 60. The value of similar debentures without call or equity conversion option is 57. The value

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Question 10 Certain callable convertible debentures are issued at 60. The value of similar debentures without call or equity conversion option is 57. The value of call as determined using Black and Scholes model for option pricing is ? 2. Determine values of liability and equity component (5 Marks, May, 2011)

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