Sharon has a convertible bond with a face value of $1,000 that can be converted into 40 shares of common stock of Mountain Ice Corporation.If the current price of the stock is $20,what is the conversion price of the bond?
A) $20
B) $50
C) $800
D) $500
E) None of the above.

Question

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The Answer of Sharon has a convertible bond with a face value of $1,000 that can be converted into 40 shares of common stock of Mountain Ice Corporation.If the current price of the stock is $20,what is the conversion price of the bond?
A) $20
B) $50
C) $800
D) $500
E) None of the above.

Sharon Has a Convertible Bond with a Face Value of $1,000