The Holders of Xenron Corporation's Bond with a Face Value

question 33

Multiple Choice

The holders of Xenron Corporation's bond with a face value of $1,000 can exchange that bond for 35 shares of stock. The stock is selling for $22.00. What is the conversion value of the bond?

• A) $25
• B) $40
• C) $770
• D) $1,000
• E) No conversion premium is given.

---

Definitions:

Gear-select Motors

Electric motors in an automated or semi-automated transmission that engage and disengage gears based on driver input or computer control.

Single-module Controller

An electronic device that consolidates the control functions of multiple systems into a single unit.

J1939 Data Bus

A specialized data bus standard used in heavy-duty vehicles and industrial equipment to facilitate communication between the vehicle's components and external devices.

Inductive Pulse Generator

A shaft speed or position sensor that produces analog AC voltage signal by using a rotating reluctor wheel (aka chopper wheel, pulse wheel) that cuts through a permanent magnetic field; the computer that receives the signal measures the AC frequency and correlates it to rpm. The principle used in wheel speed, transmission tailshaft speed, crankshaft speed, and many other types of shaft speed sensors.