The Holders of Xenron Corporation's Bond with a Face Value

question 4

Multiple Choice

The holders of Xenron Corporation's bond with a face value of $1,000 can exchange that bond for 35 shares of stock. The stock is selling for $22.00.
-Refer to the above scenario.What would the conversion price and conversion ratio be if Xenron had a 3 for 1 stock split?

• A)$7.33; 75
• B)$9.52; 105
• C)$22.00; 25
• D)$28.57; 35
• E)None of the above.

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Definitions:

Outlier

An observation in data that is significantly distant from the rest of the observations, often indicating a measurement or entry error, or a novel or extreme value.

Positively Associated

A relationship between two variables where they move in the same direction, implying that as one variable increases, the other one also increases.

Above-average Values

Above-average values refer to data points or observations that exceed the average or mean value of the data set.

Scatterplot

A scatterplot is a graphical representation used to display the relationship between two variables, with data points plotted on a Cartesian coordinate system.