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Orient Airlines' Common Stock Currently Sells for $32,and Its 8

Question 26

Multiple Choice

Orient Airlines' common stock currently sells for $32,and its 8.0% convertible debentures (issued at par,or $1,000) sell for $850.Each debenture can be converted into 26 shares of common stock at any time before 2028.What is the conversion value of the bond? Do not round your intermediate calculations.


A) $915.20
B) $1,040.00
C) $956.80
D) $832.00
E) $748.80

Correct Answer:

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