What is the difference between the conversion value and conversion premium?
A) The conversion value is the total value received if converted and the conversion premium is the difference between the value that would be received and how much the bond is selling for.
B) The conversion value is the total value of what the bond is selling for and the conversion premium is the difference between the value that would be received and how much the bond is selling for.
C) The conversion value is the total value received if converted and the conversion premium is the difference between the value that would be received and the par value of the stock.
D) There is no difference since conversion value and conversion premium mean the same thing.
Correct Answer:
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