A $1,000 Par Value Bond Has a Market Price of $980

question 24

Multiple Choice

A $1,000 par value bond has a market price of $980 and a conversion ratio of 18. The stock is selling for $57.30. What is the conversion value?

• A) $1,052.45
• B) $1,031.40
• C) $1,011.15
• D) $987.60
• E) $974.58

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Definitions:

Initial Value

The starting point or original amount before any changes, such as growth or depreciation, have been applied.

Final Value

The value of an investment at the end of a specified period, taking into account factors like principal, interest rate, and time.

Percent Change

The proportionate change in a value over time, represented as a percentage, to indicate increase or decrease.

Initial Value

The starting value or condition from which progress or decay is measured.