Conversion ratio, Conversion value and Straight bond value
9. Define: a) Conversion ratio b) Conversion value c) Straight bond value in relation to a convertible bond.
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a) The conversion ratio is that amount of shares of common stock that will be obtained if a convertible bond is converted. b) The conversion value is the total value of common stock that will be obtained. c) The straight bond is the value that a convertible bond will have without the conversion feature.
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