You own a bond with a face value of $100,000 and a conversion ratio of 400....

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Question

You own a bond with a face value of $100,000 and a conversion ratio of 400. What is the conversion price? The conversion pric

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Answer 1

Answer #1

conversion ratio implies 400 shares will be given in exchange of 1 bond. So conversion price implies the price per share.

CONVERSION PRICE = FACE VALUE OF BOND/CONVERSION RATIO

CONVERSION PRICE = 100000/400 = 250.00

ANSWER : $250.00 (Thumbs up please)

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Answer 2

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