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NEW QUESTION: 1
Bubba buys a bond issued at par with a 5% coupon that is convertible into common stock at $40. The
bond increases in value by 20 points. What is the conversion parity of the stock?
A. $25
B. $50
C. $40
D. $48
Answer: D
Explanation:
$48. A 20-point increase results in a bond value of $1,200. Divide that by the conversion
ratio of 25 shares to arrive at $48.

NEW QUESTION: 2

A. Option B
B. Option C
C. Option D
D. Option A
Answer: C,D

NEW QUESTION: 3
Scenario:

A. Option B
B. Option C
C. Option D
D. Option A
Answer: D

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