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Conversion price Calculate the conversion price for the following convertible bond: A $700-par-value bond that is convertible

Conversion price Calculate the conversion price for the following convertible bond: A $700-par-value bond that is convertible into 25 shares of common stock. 

The conversion price is $_______  per share. (Round to the nearest cent.)

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Answer #1
Conversion price = Bond par value/conversion ratio
Conversion price = 700/25
Conversion price = 28
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