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Alley Kat purchased a convertible bond for $1050 with a par value of $1000. The...

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Accounting

Alley Kat purchased a convertible bond for $1050 with a par value of $1000. The bond's conversion price is $40 a share and shares of common stock are currently selling for $41 a share. What is the bonds conversion premium?

0 $25

O $40

O $60

O $80

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