The Conversion Ratio Is Defined as The

question 117

Multiple Choice

The conversion ratio is defined as the:

• A) Market value of a bond divided by the face value of the bond.
• B) Market value of a bond divided by the conversion price.
• C) Increase in the market value that would be realized if a bond were exchanged for stock.
• D) Number of shares of stock that can be received in exchange for one bond.
• E) Dollar amount of a bond's par value that is exchangeable for one share of stock.

---

Definitions:

Depreciated

A reduction in the value of an asset over time, typically due to wear and tear or obsolescence.

Foreign Exchange

The exchange of one currency for another, or the conversion of one currency into another currency.

International Trade

The exchange of goods, services, and capital among countries and territories, which can lead to increased economic growth and consumer choice.

U.S. Dollar

The official currency of the United States, widely used as a benchmark in global financial transactions.