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

question 21

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 the options

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Definitions:

Change Fund

A change fund is a set amount of money, composed of various denominations, used to make change for transactions in business operations.

Cash Register

A mechanical or electronic device for calculating and recording sales transactions, and an attached drawer for storing cash.

Cash Sales

Transactions where the payment for goods or services is made immediately in cash, without extending credit.

Cash Register Total

The sum amount of cash transactions recorded by a cash register within a certain time period.