Sharon Has a Convertible Bond with a Face Value of $1,000

question 83

Multiple Choice

Sharon has a convertible bond with a face value of $1,000 that can be converted into 40 shares of common stock of Mountain Ice Corporation.If the current price of the stock is $20,what is the conversion price of the bond?

• A) $20
• B) $50
• C) $800
• D) $500
• E) None of the above.

---

Definitions:

Species-Typical Behavior

Actions and patterns of behavior that are characteristic and expected of a particular species.

Arousal Desires

The yearning or longing for situations or stimuli that incite emotional or physiological excitement.

Autonomic Nervous System

The part of the nervous system that controls involuntary body functions such as heart rate and digestion.

Two-Factor Theory

A psychological model proposing that human emotions depend on a state of physiological arousal and a cognitive interpretation of that arousal to experience emotion.