A Company Has a Convertible Bond with a Conversion Price

question 1

Multiple Choice

A company has a convertible bond with a conversion price of $27 per share.The company's common stock is currently trading at $23 per share.What is the conversion value of the bond? (round to whole dollars) .

• A)$1000
• B)$800
• C)$852
• D)$828

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Definitions:

Boost Efficiency

Increase the effectiveness or productivity of a process or operation with the same amount of input.

Raw Materials Inventory

Stock of basic materials that are used in the production process of goods and are yet to be processed or transformed into final products.