A $1000 face value convertible bond has a conversion ratio of 40 and is about to mature.
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A $1000 face value convertible bond has a conversion ratio of 40 and is about to mature. Ignoring any transaction costs, what price must the stock surpass in order for you to convert?
Face ValueFace value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-0321818171
2nd Canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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