Many years ago, Winding Road Maps issued a convertible bond

Many years ago, Winding Road Maps issued a convertible bond with a conversion ratio equal to 40. The bond’s face value is $1,000. 

(a) For how many shares of stock can a bondholder convert each bond? 

(b) At what stock price should bondholders convert?

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
Related Book For answer-question

CFIN

5th edition

Authors: Scott Besley, Eugene Brigham

ISBN: 978-1305666870

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