Multiple Choice
Coupon: 0% Call Date: 1 July 2012 Call Price: 104.32% Maturity: 1 July 2019 A firm issues the convertible debt shown above. The price of stock in this company on 1 July 2012 is $28.20. What is the minimum conversion ratio that would make a bondholder prefer to convert rather than accept the call price?
A) 37 shares per $1000 principal amount
B) 32 shares per $1000 principal amount
C) 41 shares per $1000 principal amount
D) 35 shares per $1000 principal amount
Correct Answer:
Verified
Correct Answer:
Verified
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