A bond with a face value of $1,000 can be converted into 33 shares of stock.What is the conversion value if the stock is selling for $29.80 a share?
A)$30.30
B)$33.33
C)$983.40
D)$1,000
E)$0

Question

Quizplus · Accepted Answer

The conversion value is the current market value of the shares received by converting the bond.

33 shares of stock at $29.80 per share = 33 x $29.80 = $983.40

Thus, the conversion value is $983.40.

A Bond with a Face Value of $1,000 Can Be