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Non-Tech : Convertible Bonds

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To: Rocky9 who wrote (69)6/7/2003 1:32:21 PM
From: Alex  Read Replies (3) of 83
 
Question.
If a company issues convertible debentures, at say a conversion price of $7.00, and the shares subsequently trade at $6.00, at what price, in general, would it be reasonable to expect the holders of those debentures to convert them? At $7.00, slightly higher, or much higher? How common is it for the holders of these debentures to short the common stock? Sorry for the abrupt intrusion but would appreciate some thoughts on this from anyone on the thread.

Best Regards,

Alex
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