Products & Risks第 16 / 125 题
Using a conversion ratio of 25 shares per bond, at what common stock price is a convertible bond trading at parity with a bond market price of $1,050?
a.$40.00
b.$26.25
c.$25.00
d.$42.00
解析
Parity price of the stock equals the bond's market price divided by the conversion ratio: $1,050 / 25 = $42.00. If the stock trades above $42, converting and selling shares would be worth more than the bond's current market price.
免费刷完整 125 道题库 — 无需注册。
同考点相关题目
- Interest income from U.S. Treasury securities is:
- A convertible bond gives the holder the right to:
- 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 call feature on a corporate bond primarily benefits:
- Under the Investment Company Act of 1940, an open-end investment company (mutual fund):
- The public offering price (POP) of a mutual fund share with a front-end sales load is calculated as: