Convertible into shares of the firms common stock

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Reference no: EM131185178

The bonds of a company are convertible into shares of the firm's common stock at $40 per share. The current price of the common stock is $35 per share. The bonds have a $1,000 par value and currently sell for $900 apiece. When the bonds were issued, the market price of the common stock was $30. What is the conversion value of these bonds? Select one: a. $ 825 b. $ 875 c. $ 900 d. $ 975 e. $1,000

Reference no: EM131185178

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