A Firm Issues the Convertible Debt Shown Above

Multiple Choice

A firm issues the convertible debt shown above.The price of stock in this company on July 1,2008 is $4.95.If the bonds are called on this date,which of the following is the action most likely to be taken by a holder of bond of face value of $10,000?

A) Convert the bond and accept shares with a value of $10,000.
B) Convert the bond and accept shares with a value of $10,128.00.
C) Convert the bond and accept shares with a value of $10,239.13.
D) Convert the bond and accept shares with a value of $10,246.50.
E) Accept the call price and receive $10,000.