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What is the conversion value of the bond

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Reference no: EM133114030

Question - Plunkett Gym Equipment Inc. has a $1,000 par value convertible bond outstanding that can be converted into 20 shares of common stock. The common stock is currently selling for $33.30 a share, and the convertible bond is selling for $726.40.

Required -

a. What is the conversion value of the bond?

b. What is the conversion premium?

c. What is the conversion price?

Reference no: EM133114030

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