What Happens in the Case of a Bond Selling for $1,000

question 48

Multiple Choice

What happens in the case of a bond selling for $1,000 which can be converted to 20 shares of stock that are currently selling for $55 per share?

• A)All the bondholders will choose to convert
• B)The stock will go down to $50 per share
• C)The bond's price will go down to $900
• D)Some of the bondholders will choose to convert

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Definitions:

Selling

The act or process of exchanging a product or service for money; a fundamental business activity.

Complex Process

Describes a procedure or operation that is intricate, involving multiple steps, components, or layers.

Prospect's Five Mental Steps

The chronological thought process a potential buyer goes through: awareness, interest, evaluation, trial, and adoption.

Ignorance

The state of being unaware, uninformed, or lacking knowledge about something.