The holder of a $1,000 face value bond has the right to exchange the bond anytime before maturity for shares of stock priced at $50 per share.The $50 is called the:
A)conversion price.
B)stated price.
C)exercise price.
D)striking price.
E)None of the above.

Question

Quizplus · Accepted Answer

The $50 per share price at which the bondholder can exchange the bond for shares of stock is called the conversion price.

The Holder of a $1,000 Face Value Bond Has the Right