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A $1000 par value convertible bond has a conversion price of $25. It is currently selling...

A $1000 par value convertible bond has a conversion price of $25. It is currently selling for $1,200, despite the fact that the bond's coupon rate and the market interest rate are equal. The common stock obtained upon conversion is selling for $27 per share. What is the convertible bond's conversion ratio?

Select one:

a.

37

b.

40

c.

48

d.

200

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