You Own fiVe Convertible Bonds

question 382

Multiple Choice

You own five convertible bonds. These bonds have a 6 percent coupon, a $1,000 face value and mature in 9 years. The bonds are convertible into shares of common stock at a conversion price of
$22) 50. How many shares of stock will you receive if you convert all of your bonds?

• A) 44.44 shares
• B) 87.05 shares
• C) 145.00 shares
• D) 222.22 shares
• E) 251.55 shares