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You bought a convertible bond issued by HiTech Corp which has a conversion ratio of 50 common shares for each $1,000 bond. At what stock
You bought a convertible bond issued by HiTech Corp which has a conversion ratio of 50 common shares for each $1,000 bond. At what stock price per share would you make a profit (in the money) if you bought the bond at par? What would you expect the bond to sell for in the market if the stock trades at $28 per share?
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