A Bond Has a Face Value of $10,000 and a Conversion

question 44

Multiple Choice

A bond has a face value of $10,000 and a conversion ratio of 265.The stock is currently trading at $38.80.What is the conversion price?

• A)$1.56
• B)$5.84
• C)$25.73
• D)$37.74

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Definitions:

Factor

A number or algebraic expression that divides another number or expression evenly—i.e., without leaving a remainder.

Missing

Something that is lost or absent, especially a piece of information that is not available.

Factoring

The process of breaking down an expression into a product of simpler expressions, often used to simplify expressions or solve equations.

Integers

Whole values including positive, negative, and zero without any fractions or decimals fall under the category of integers.