Value of conversion option to bond holder is $220 and rate of return on non-convertible bond is $350 then rate of return on convertible bond is
A. $570
B. $130
C. $670
D. $1.59
Answer: Option B
Solution(By Examveda Team)
Rate of return on convertible bond = Rate of return on non-convertible bond - Value of conversion option to bond holder= $350 - $220 = $130.
This Question Belongs to Management >> International Finance And Treasury
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