The Holders of Looper Industries Bond with a Face Value

question 1

Multiple Choice

The holders of Looper Industries bond with a face value of $1,000 can exchange that bond for 20 shares of stock. The stock is selling for $35.00. What is the conversion premium?

• A) 10.25%
• B) 35.00%
• C) 42.86%
• D) 142.86%
• E) None of these.

---

Definitions:

Voluntary

An action taken out of free will or choice, without compulsion or obligation.

Coerced

The act of compelling or forcing someone to act in a certain way by use of pressure or threats.

Internal Attributions

The process of assigning the cause of behavior to personal aspects such as traits, abilities, or feelings.

External Attributions

The process of attributing the cause of behavior to something outside the individual.