SaundersThe Following Data Apply to Saunders Corporation's Convertible Bonds -Refer to Scenario: Saunders

question 43

Multiple Choice

SaundersThe following data apply to Saunders Corporation's convertible bonds: $\begin{array}{llll}\text { Maturity: } & 10 & \text { Stock price: } & \$ 30.00 \\\text { Parvalue: } & \$ 1,000.00 & \text { Conversion price: } & \$ 35.00 \\\text { Annual coupon: } & 5.00 \% & \text { Straight-debt yield: } & 8.00 \%\end{array}$
-Refer to Scenario: Saunders.What is the bond's conversion ratio?

• A)27.14
• B)28.57
• C)30.00
• D)31.50

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