Andrus Inc. issued convertible bonds at their $1,000 par value 5 years ago The bonds currently...

Andrus Inc. issued convertible bonds at their $1,000 par value 5 years ago The bonds currently sell for $950. At any time prior to maturity on August 1, 2031, a debenture holder can exchange a bond for 25 shares of common stock. The current stock price is $30. What is the conversion price,?

$33

$32

$38

$40

None of the above

Expert Solution

Conversion price=Par value of the bond/conversion ratio

=1000/25

=40

Option D is correct

jeff jeffy answered 2 years ago

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