SBX Bonds Have a Face Value of $1,000 and Can

Multiple Choice

SBX bonds have a face value of $1,000 and can be exchanged for 20 shares of stock.Assume SBX declares a 3-for-1 stock split.What conversion price will be needed following the stock split for the conversion value and the straight bond value to be equal assuming the bond continually sells at par?

A) $16.67
B) $33.33
C) $50.00
D) $150.00
E) $66.67