The value of conversion option to bond holder is $220 and the rate of return on non-convertible bond is $350 then rate of return on convertible bond is _____________?

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Academy of PakistanTest & Learning

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364FinanceMedium

A570

B670

C1.59

D130

Correct answer

D. 130

Explanation

130 is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

The value of conversion option to bond holder is $220 and the rate of return on non-convertible bond is $350 then rate of return on convertible bond is _____________? - Answer and Explanation | Academy of Pakistan