What is the value of the common shares

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Question - Chorston Oil Rigs issued $1,000,000 of 10-year, 6% convertible bonds, at 91.  Interest is paid annually on the bonds.  Each $1,000 bond is convertible into 50 common shares, which are currently trading at $17 per share.  Similar straight bonds carry an interest rate of 8%.  Six years later, when the carrying amount of the bonds was $933,757, the bond holders decided to convert the bonds to common shares.  What is the value of the common shares that were issued upon conversion?

a. $910,000

b. $1,067,959

c. $977,959

d. $933,757

Reference no: EM132774072

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