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Value of conversion option to bond holder is 740 and rate...

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International Finance and Treasury
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Value of conversion option to bond holder is $740 and rate of return on non-convertible bond is $540 then rate of return on convertible bond is

Answer & Solution
Correct Answer: Option D
Rate of return on convertible bond = Value of conversion option to bond holder - Rate of return on non-convertible bond
= $740 - $540 = $200.
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