Debenture holder can exchange bond

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1. Roth, Inc. issued convertible bonds at their $1,000 par value 5 years ago The bonds currently sell for $1,050. At any time prior to maturity on August 1, 2031, a debenture holder can exchange a bond for 40 shares of common stock. What is the conversion price,?

$1.25

$26.25

$25.00

Not enough information provided

2. Reuth Corporation has 9% convertible debentures that were issued at par of $1000, and currently sell for $750. Each debenture can be converted into 35 shares of common stock. The company's current stock price is $25.    What is the conversion value of the bond?

$875

$965

$975

$725

None of the above

Reference no: EM131920133

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