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

question 6

Multiple Choice

A bond has a par value of $1,000 and a market value of $833.40. The conversion price is $71.43. What is the conversion ratio?

• A) 14
• B) 15
• C) 16
• D) 17
• E) 18

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Definitions:

Administrative Expenses

Costs associated with the general operation of a business, such as office salaries and utilities.

Raw Materials Inventory

The total cost of all the components and materials stored that are to be used in the production of goods.

Indirect Product Cost

Costs associated with production that are not directly attributable to the product, such as maintenance and utilities.

Advertising Campaign

A series of advertisement messages that share a single idea and theme which make up an integrated marketing communication.