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

question 55

Multiple Choice

A bond has a face value of $10,000 and a conversion ratio of 560.The stock is currently trading at $16.30.What is the conversion price?

• A)$1.56
• B)$6.13
• C)$16.30
• D)$17.86
• E)$56.00

---

Definitions:

Federal Communications Commission

A United States government agency responsible for regulating interstate and international communications via radio, television, wire, satellite, and cable.

Geographical Pricing

A pricing strategy where the price of a product or service varies depending on the geographical location or market.

FOB Freight-Allowed

A shipping term indicating that the seller pays for the transportation of goods to a specific location, but the buyer assumes the risk of loss once shipped.

Basing-Point Pricing

A pricing strategy where the price of goods includes transportation costs from a specific location, regardless of the actual shipment origin.