A $1000 par bond sells for $900 and has a conversion ratio of 25 shares. If the underlying stock price is $35, the conversion value is
A) $25
B) $100
C) $875
D) $935

Name: A $1000 par bond sells for $900 and has a conversion ratio of 25 shares. If the underlying stock price is $35, the conversion value is A) $25 B) $100 C) $875 D) $935
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Question

Quizplus · Accepted Answer

The conversion value is calculated by multiplying the conversion ratio by the stock price: 25 shares * $35 = $875.

A $1000 Par Bond Sells for $900 and Has a Conversion