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What is the conversion value of the bond

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Problem 1: Reuth Corporation has 10% convertible debentures that were issued at par, and currently sell for $1,200. Each debenture can be converted into 25 shares of common stock. The company's current stock price is $50 What is the conversion value of the bond?

a. $600

b. $625

c. $1,000

d. $1.250

e. None of the above

Reference no: EM132657563

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