Value of conversion option to bond holder is $550 and rate of return on non-convertible bond is $270 then rate of return on convertible bond is

Value of conversion option to bond holder is $550 and rate of return o

1.	Value of conversion option to bond holder is $550 and rate of return on non-convertible bond is $270 then rate of return on convertible bond is
A.	.04%
B.	2.04
C.	280
D.	820
Answer» D. 820