A Convertible Bond Has a Par Value of $1 000

question 41

Multiple Choice

A convertible bond has a par value of $1 000 but its current market price is $975. The current price of the issuing company's shares is $26 and the conversion ratio is 34 shares. The bond's market conversion value is ________.

• A)$1 000
• B)$884
• C)$933
• D)$980

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Definitions:

Substance

Material or matter; in contexts like drug use, it refers to drugs or alcohol consumed by a person.

Synthesized Product

A product that is created by chemical synthesis, especially one that is artificially produced in a laboratory or industrial setting.

Abstain

To deliberately choose not to partake in a certain behavior or indulgence, often related to substances like alcohol or drugs.

Alcohol

A chemical substance found in drinks such as beer, wine, and spirits that can alter consciousness and often leads to intoxication.