A company issued convertible bonds at $1,000 par value. Bondholders can exchange the bond for 25...

A company issued convertible bonds at $1,000 par value. Bondholders can exchange the bond for 25 shares of common stock at any time prior to maturity. What is the conversion price?

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Expert Solution

Conversion Price = Face Value/COnversion ratio

Conversion Price= $1000/25

Conversion Price= $40

jeff jeffy answered 1 year ago

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