A $1,000 Par Value Bond with a Conversion Price of $100

question 63

Multiple Choice

A $1,000 par value bond with a conversion price of $100 has a conversion ratio of:

• A) $20.
• B) 20 shares.
• C) $10.
• D) 10 shares.
• Conversion ratio = Par value of $1,000/Conversion price of $50 = 20 shares

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