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Posted on Jun 05, 2024

You purchased a convertible bond for $900 today. The convertible bond has a conversion ratio of 30. The current market price of the underlying stock

You purchased a convertible bond for $900 today. The convertible bond has a conversion ratio of

30. The current market price of the underlying stock is $25 per share. Tomorrow, the stock price

increases from $25 to $54. Your realized return from this investment is close to:

a) 62%

b) 80%

c) 100%

d) 116%

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