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A bond has a face value of $10,000 and a conversion price of $46.04. The stock...

A bond has a face value of $10,000 and a conversion price of $46.04. The stock is currently trading at $35.02. What is the conversion ratio?

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Answer #1

Conversion ratio = Face value of bond Conversion price

Conversion ratio = $10,000 $46.04

Conversion ratio = 217.2 shares

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