Bondholders will NOT convert their convertible bonds into shares of stock only when the conversion price is greater than the market price of the stock.

Question

Quizplus · Accepted Answer

Bondholders will not convert their bonds into shares if the conversion price is higher than the market price, as it would be more beneficial to sell the bonds or hold them rather than converting them into shares at a loss.

Bondholders Will NOT Convert Their Convertible Bonds into Shares of Stock