What Is the Conversion Ratio of a $1,000 Par Value

question 110

Multiple Choice

What is the conversion ratio of a $1,000 par value bond that is selling for $888.96 and has a conversion price of $66.67?

• A) 15
• B) 16
• C) 17
• D) 18
• E) 19

---

Definitions:

Poor Economy

A situation characterized by low economic activity, high unemployment, and declining market conditions.

Expected Return

The anticipated amount of profit or loss an investment generates, based on projections or historical data.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, commonly used in finance to assess the volatility of investment returns.

Security Market Line

A representation in the Capital Asset Pricing Model (CAPM) that displays the relationship between the expected return of an investment and its risk.