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Conversion ratio, Conversion value and Straight bond value

9. Define:
a) Conversion ratio
b) Conversion value
c) Straight bond value in relation to a convertible bond.

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a) The conversion ratio is that amount of shares of common stock that will be obtained if a convertible bond is converted.
b) The conversion value is the total value of common stock that will be obtained.
c) The straight bond is the value that a convertible bond will have without the conversion feature.

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