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