You own one convertible bond with a face value of $1,000. The bond can be converted into 8.889 shares of Alpha stock. This bond is currently selling for $1,063. What is the conversion price?
A) $87.50
B) $96.08
C) $104.50
D) $112.50
E) $119.59

Question

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The Answer of You own one convertible bond with a face value of $1,000. The bond can be converted into 8.889 shares of Alpha stock. This bond is currently selling for $1,063. What is the conversion price?
A) $87.50
B) $96.08
C) $104.50
D) $112.50
E) $119.59

You Own One Convertible Bond with a Face Value of $1,000