Describe the conversion privilege on a convertible security. Explain how the market price of the underlying common

Question:

Describe the conversion privilege on a convertible security. Explain how the market price of the underlying affects the market price of a convertible bond.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...