A conversion feature allows

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Reference no: EM131310876

1. A conversion feature allows:

A. the bondholder to redeem the bond before the maturity date.

B. the corporation to redeem the bond before the maturity date.

C. the bondholder to convert the bond to common stock.

D. the bondholder to demand increased collateral.

2. A convertible bond is currently selling for $970. It is convertible into 15 shares of common which presently sell for $50 per share. The conversion premium is

A. $90

B. $220

C. 57 shares

D. 13 shares

Reference no: EM131310876

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