A Convertible Bond Has a Par Value of $1,000 and a Current

question 58

Multiple Choice

A convertible bond has a par value of $1,000 and a current market price of $850.The current price of the issuing firm's stock is $29 and the conversion ratio is 30 shares.The bond's market conversion value is ______.

• A)$729
• B)$810
• C)$870
• D)$1,000
• E)none of the above

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Definitions:

Cortisol

A steroid hormone released by the adrenal glands in response to stress or low blood-glucose concentration; plays a significant role in the body's response to stress.

Erythropoietin

A hormone produced by the kidneys that stimulates the production of red blood cells in the bone marrow.

Kidney

A pair of organs located in the abdominal cavity responsible for filtering waste products from the blood and excreting them as urine.

Pineal Body

A small gland located between the cerebral hemispheres that secretes melatonin.