Orient Airlines' Common Stock Currently Sells for $33,and Its 8

question 50

Multiple Choice

Orient Airlines' common stock currently sells for $33,and its 8% convertible debentures (issued at par,or $1,000) sell for $850.Each debenture can be converted into 25 shares of common stock at any time before 2022.What is the conversion value of the bond?

• A)$707.33
• B)$744.56
• C)$783.75
• D)$825.00
• E)$866.25

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Definitions:

ECT

Electroconvulsive Therapy (ECT) is a medical treatment most commonly used for patients with severe major depression or bipolar disorder that has not responded to other treatments.

Seizures

Unexpected, erratic electrical disruptions within the brain resulting in variations in behavior, motion, sensations, and conscious state.

Repetitive Transcranial Magnetic Stimulation

A noninvasive procedure that uses magnetic fields to stimulate nerve cells in the brain, used for treating depression and other disorders.

Depression

A mental ailment described by a constant sadness or lack of motivation in activities, majorly impacting everyday functioning.