The ________ value is the price the bond would sell for in the market without the conversion feature.
A) conversion
B) straight bond
C) striking price
D) market premium

Question

Quizplus · Accepted Answer

The option is describing a bond with a conversion feature, which would have two values: the straight bond value (without the conversion feature) and the conversion value (with the option to convert to stock). The question specifically asks for the value without the conversion feature, which would be the straight bond value.

The ________ Value Is the Price the Bond Would Sell