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Question: O'Reilly Moving Company has a $1,000 par value convertible bond outstanding that can be converted into 25 shares of common stock. The common stock is currently selling for $36.25 a share, and the convertible bond is selling for $970.

a. What is the conversion value of the bond?

b. What is the conversion premium?

c. What is the conversion price?

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Category:- Basic Finance
Reference No.:- M92601208

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