Question

The derp corporation has an outstanding convertible bond issue that is convertible into 8 shares of stock. if the current market price of the bond is 80, the parity price of the stock is:_____.

Answer 1

The derp corporation has an outstanding convertible bond issue that is convertible into 8 shares of stock. if the current market price of the bond is 80, the parity price of the stock is Parity means equal.

A parity price is the price level at which two assets or securities are of equal value. This is a concept used in several markets such as bonds, stocks, commodities and convertibles.

Import Parity Price or IPP is defined as: So c.i.f. Import price plus customs duty plus shipping cost to buyer's location.

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