You own a bond with a face value of $100,000 and a conversion ratio of 375....

Question

Question

You own a bond with a face value of $100,000 and a conversion ratio of 375. What is the conversion price?

The conversion price for this bond is $____. (Round to the nearest cent.)

business finance

Answer 1

Answer #1

Formula to calculate conversion price of bond
Conversion price of bond	Price of bond/Conversion ratio
Conversion price of bond	$100,000/375
Conversion price of bond	$266.67

Thus, conversion price for this bond is $266.67.

Answer 2

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