A bond has a conversion ratio of 22, a $1,000 par value, and a market price of $1,038. The stock is selling for $46.14. What is the conversion value?

Name: A bond has a conversion ratio of 22, a $1,000 par value, and a market price of $1,038. The stock is selling for $46.14. What is the conversion value?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To calculate the conversion value, we multiply the conversion ratio by the current stock price:
$46.14 × 22 = $1,015.08

A Bond Has a Conversion Ratio of 22, a $1,000