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Convertible issue's conversion ratio

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kashauna1077 | 19:33 Sat 29th Nov 2008 | Business & Finance
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The Pabst Securities recently issued convertible bonds with a $1,000 par value. The bonds have a conversion price of $40 a share. What is the convertible issue's conversion ratio?
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Avatar Image CheekyChops
87:1
20:41 Sat 29th Nov 2008
Avatar Image factor-fiction
I make it 84;1
15:42 Sun 30th Nov 2008
Avatar Image dr b
For a convertible bond the conversion ratio equals the par value of the bond divided by the conversion price (the share price at which conversion takes place). So why is it not 1000/40 = 25?
15:47 Sun 30th Nov 2008

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