Refer to the Exhibit

question 36

Multiple Choice

Refer to the exhibit. Which data format is being used?

Definitions:

Conversion Value

The financial worth of a convertible security if it is converted into a different form, usually shares of the company's common stock.

Straight Bond Value

The value of a bond that pays fixed interest payments and does not have any additional features such as convertibility or callable options.

Conversion Value

The worth of a convertible security if it is converted into a different asset, usually common stock, at the current market price.

Convertible Bond

A type of bond that can be converted into a predetermined amount of the issuing company's equity at certain times during the bond's life, usually at the discretion of the bondholder.