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mantparn mantparn
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7 years ago
A firm currently has outstanding a 9 percent, $1,000 convertible bond. The bond is convertible into 100 shares of common stock at a conversion price of $10 per share and callable at $1,090. The current market price of the firm's stock is $12 per share. The bond holder will ________.
A) allow the call to be exercised realizing $90 over par value
B) convert the bond into stock realizing $200 over par value
C) convert the bond into stock realizing only par value
D) wait until the stock price goes up further
Textbook 
Principles of Managerial Finance

Principles of Managerial Finance


Edition: 14th
Authors:
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UlainUlain
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7 years ago
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mantparn Author
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#2
6 years ago
Thanks again for helping me in my management class!
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