Products & RisksPregunta 15 de 125
A convertible bond has a par value of $1,000 and a conversion price of $40. How many shares of common stock will the holder receive upon conversion?
a.40 shares
b.4 shares
c.25 shares
d.250 shares
Explicación
The conversion ratio equals par value divided by the conversion price: $1,000 / $40 = 25 shares. Each bond can be exchanged for 25 shares of the issuer's common stock.
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