A Bond Has a Face Value of $100 and a Conversion

question 55

Multiple Choice

A bond has a face value of $100 and a conversion ratio of 28. What is the conversion price?

• A) $28.00
• B) $2.80
• C) $3.57
• D) $0.28

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Definitions:

Delivery Charge

A fee charged for the delivery of goods or services to a recipient's location.

Cash Discount

A reduction in the price of an item or service offered to a buyer for immediate payment or within a predefined time.

Freight Charges

Costs associated with transporting goods from one place to another.

Discount Date

The specified date on which a discount is applied or becomes effective, often used in the context of payments or billing.