Bavarian Brew issued convertible bonds with a par value of $1,000.The conversion ratio on the bonds is 12.33,the current market price of the bonds is $933.75 and the underlying stock currently sells at $35.25.What is the conversion price?

Name: Bavarian Brew issued convertible bonds with a par value of $1,000.The conversion ratio on the bonds is 12.33,the current market price of the bonds is $933.75 and the underlying stock currently sells at $35.25.What is the conversion price?
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Question

Quizplus · Accepted Answer

933.75/12.33 = 75.73

Bavarian Brew Issued Convertible Bonds with a Par Value of $1,000.The