What is the conversion price?
A) 35
B) 770
C) 28.57
D) 1000

Name: What is the conversion price? A) 35 B) 770 C) 28.57 D) 1000
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The conversion price is calculated by dividing the par value of the bond by the conversion ratio. In this case, the par value of the bond is $1,000 and the conversion ratio is 35 (meaning each bond can be converted into 35 shares of common stock). Therefore, the conversion price is $1,000/35 = $28.57.

What Is the Conversion Price