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

question 11

Multiple Choice

A bond has a face value of $10,000 and a conversion ratio of 530. The stock is currently trading at $16.50. What is the conversion price?

• A) $7.55
• B) $16.50
• C) $18.87
• D) $53.00

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Definitions:

Small Intestine

A long, coiled section of the intestinal tract where most digestion and absorption of nutrients occurs.

Circular Folds

Series of folds on the inner surface of the intestine that increase its surface area for absorption.

Microvilli

Tiny hair-like structures on the surface of some cells that increase surface area for absorption or secretion.

Rugae

The folds or ridges found on the internal surface of the stomach, which allow it to expand as needed.