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

question 23

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 2019. 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:

Word Vocabulary

The set of words known and used by a person in speech and writing.

Sensorimotor Period

A developmental stage in early childhood (typically from birth to 2 years) where infants learn about their environment through sensory experiences and motor actions.

Nonmatching-To-Sample Task

A behavioral test in cognitive science where the subject must select the object that is different from a sample object presented earlier.

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, involved in complex behavioral functions, decision making, and voluntary movement.