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

question 98

Multiple Choice

What happens in the case of a bond selling for $1,000 that can be converted to 20 shares of stock that are currently selling for $45 per share?

• A) The bondholders will choose to convert.
• B) The stock will go up to $50 per share.
• C) The bond's price will go down to $900.
• D)The bond price is unaffected by the stock price.

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Definitions:

Morphological Adaptation

Morphological adaptation involves changes in an organism's physical structure to improve its chances of survival in its environment.

Vertebrate Eye

A complex organ in vertebrates that allows for vision by detecting light and converting it into neural signals.

Genetic Engineering

The deliberate modification of the characteristics of an organism by manipulating its genetic material.

Darwin's Finches

A group of Galápagos Islands' finches that played a critical role in Charles Darwin's study of natural selection.