A Convertible Bond Has a Par Value of $1,000 and a Current

question 4

Multiple Choice

A convertible bond has a par value of $1,000 and a current market price of $850.The current price of the issuing firm's stock is $29 and the conversion ratio is 30 shares.The bond's market conversion value is ______.

• A) $729
• B) $810
• C) $870
• D) $1,000
• E) none of these

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