A firm issues the convertible debt shown above. The price of stock in this company on July 1, 2008 is $4.70. If the bonds are called on this date, which of the following is the action most likely to be taken by a holder of bond of face value of $10,000?
A) Convert the bond and accept shares with a value of $10,000.
B) Convert the bond and accept shares with a value of $9599.75.
C) Convert the bond and accept shares with a value of $10,105.00.
D) Accept the call price and receive $10,000.
Correct Answer:
Verified
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