Why does the premium over the bonds conversion value decline as the value of the stock rises?

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Why does the premium over the bond’s conversion value decline as the value of the stock rises?

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Investments An Introduction

ISBN: 978-0324561388

9th Edition

Authors: Herbert B Mayo

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Question Posted: Jun 26, 2012 07:35 AM

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Why does the premium over the bonds conversion value decline as the value of the stock rises?

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As the price of the stock rises both the conversion value of the bond as stock and the ...View the full answer

Investments An Introduction

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