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

question 78

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) Bondholders will not convert.

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Definitions:

Urbanized Industrial

Characterized by the growth of cities and the development of manufacturing and services, leading to a shift from agricultural-based economies.

Extractive Economy

An economic model that focuses on the extraction of natural resources for export, often associated with colonial and developing nations.

McCarran Act

also known as the Internal Security Act of 1950, is a United States federal law that required Communist organizations to register with the U.S. Attorney General and established the Subversive Activities Control Board.

1952

The year 1952, significant for various historical events including the U.S. presidential election where Dwight D. Eisenhower was elected President.