The holder of a $1,000 face value bond can be exchanged any time for 25 shares of stock. Then the conversion price is:
A) $40
B) $25
C) $100
D) None of the above.

Name: The holder of a $1,000 face value bond can be exchanged any time for 25 shares of stock. Then the conversion price is: A) $40 B) $25 C) $100 D) None of the above.
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Question

Quizplus · Accepted Answer

The conversion price is calculated by dividing the face value of the bond by the number of shares it can be converted into: $1,000 / 25 shares = $40 per share.

The Holder of a $1,000 Face Value Bond Can Be