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The Petersen Corporation recently issued $2,000,000 worth of convertible bonds with a $1,000 par value. The conversion ratio is 1:40. (That means that one bond can be converted into 40 shares of stock.)
a) What is the conversion value of the stock?
b) How many bonds were issued?
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It is very necessary if you're going to understand the American character in the 20th century to learn about this enormous catastrophe of the mid-19th century. It was the crossroads of our being.
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