The holder of a $1,000 face value bond has the right to exchange the bond any time before maturity for shares of stock priced at $50 per share. The $50 is called the
A)conversion price.
B)stated price.
C)exercise price.
D)striking price.

Question

Quizplus · Accepted Answer

The $50 is referred to as the conversion price, which is the predetermined price at which the bond can be converted into shares of the issuing company's stock.

The Holder of a $1,000 Face Value Bond Has the Right