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QUESTION 4 A convertible bond has the following characteristics: SBV=980, Conversion ratio = 20 shares, Current market value of one share straight bond value. The

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QUESTION 4 A convertible bond has the following characteristics: SBV=980, Conversion ratio = 20 shares, Current market value of one share straight bond value. The floor price (intrinsic value) of the bond is = $47.5, and Face Value = $1000. SBV is a. $950 b. $980 c. $1000 O d. $475 O e. $1100

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