Slater Mines Just Called Its Outstanding Bonds at a Call

question 69

Multiple Choice

Slater Mines just called its outstanding bonds at a call price of $1,025. The bonds have a conversion price of $33.33 and a par value of $1,000. The stock price is currently $33.10. In response to this call, the bondholders should ________ because ________.

• A)accept the call; the call price exceeds the conversion value
• B)accept the call; they have no other choice
• C)convert their bonds; the conversion price exceeds the par value by $37.90
• D)convert their bonds; the conversion price exceeds the call price by $12.90
• E)elect to continue holding their bonds; they want to continue receiving the interest payments

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Definitions:

Fovea

A tiny pit located in the macula of the retina that provides the clearest vision of all by having a high concentration of cones and no rods.

Color Vision

The ability of the visual system to distinguish objects based on the wavelengths of the light they reflect or emit.

Dark Adaptation

The method through which eyes enhance their ability to perceive dimly lit environments.

Rods

Photoreceptor cells in the retina of the eye that are sensitive to low levels of light and are primarily responsible for night vision.