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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