The price at which a convertible bond would sell for if it could NOT be converted into common stock is called:
A) floor value.
B) straight bond value.
C) convertible bond value.
D) conversion value.

Question

Quizplus · Accepted Answer

The price at which a convertible bond would sell for if it could not be converted into common stock is the straight bond value. This is because the bond is essentially a fixed income security until it is converted, and its value is determined by the prevailing interest rates and creditworthiness of the issuer. The other options (floor value, convertible bond value, and conversion value) are all related to the bond's ability to be converted into common stock, which is not relevant in this scenario.

The Price at Which a Convertible Bond Would Sell for If