Multiple Choice
What happens in the case of a bond selling for $1,000 that can be converted to 20 shares of stock that are currently selling for $45 per share?
A) The bondholders will choose to convert.
B) The stock will go up to $50 per share.
C) The bond's price will go down to $900.
D) The bond price is unaffected by the stock price.
Correct Answer:
Verified
Correct Answer:
Verified
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