The common stock of Bike Tours, Inc. pays no dividend, and has a market price of $80 per share. Bike Tours’ 8% ($80 annual coupon) convertible bond sells at 128% of the par value ($1280), and is convertible into common at a stock price of $100 per share. The conversion premium for Bike Tours’ convertible bond is __________.A. $1000B. $280C. $800D. $480
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