The value of conversion option to bond holder is $740 and the rate of return on non-convertible bond is $540 then rate of return on convertible bond is ____________?

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Academy of PakistanTest & Learning

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5FinanceMedium

A200

B1280

C1.37

D0.0137

Correct answer

A. 200

Explanation

200 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 $740 and the rate of return on non-convertible bond is $540 then rate of return on convertible bond is ____________? - Answer and Explanation | Academy of Pakistan