A Bond with a Face Value of $1000 Is Convertible

question 4

Multiple Choice

A bond with a face value of $1000 is convertible to common stock at a conversion ratio of 60.If the stock is currently trading at $8.20 per share,the value of the bond is probably closest in value to which of the following?

• A)less than $492
• B)about $492
• C)about $1000
• D)above $1666

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Definitions:

Growth Stunting

A reduced growth rate.

South-Central Asia

A geographic region of Asia that typically includes countries such as India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, and sometimes Afghanistan and parts of Central Asia.

West Africa

A region located in the western part of the African continent, known for its diverse cultures, languages, and historical significance.

South America

A continent located in the Western Hemisphere, mostly in the Southern Hemisphere, with a wide diversity of cultures, ecosystems, and countries.