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The ABC company issued convertible bonds with a total value of $35,000,000 at a coupon rate of 6.5%. Bond holders can convert each bond (par

The ABC company issued convertible bonds with a total value of $35,000,000 at a coupon rate of 6.5%. Bond holders can convert each bond (par value of $1,000) into 25 shares of stock any time before maturity.

Is there an option included in this bond? Explain.

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