If a Par Value $1,000 Bond Is Convertible into 20

question 73

Multiple Choice

If a par value $1,000 bond is convertible into 20 shares of the company's stock at the discretion of the investor, what must the market price of the stock be in order for the investor to make the conversion?

• A) $1,000
• B) $49.50
• C) $50.01
• D) $50

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Definitions:

Aggressive Tactics

Strategies or behaviors that are assertive, forceful, and possibly attacking, often used in competitive contexts.

Al Dunlap

A controversial American executive known for his aggressive cost-cutting measures and restructuring activities, particularly during his tenure at Sunbeam Corporation.

Apathetic Leaders

Leaders who show a lack of interest, enthusiasm, or concern towards their responsibilities or those they lead.

Unethical

Actions or decisions that go against moral principles or standards of conduct.