Superhero Industries reported the following at September 30:

Requirements 

1. Record retirement of half of the bonds on October 1 at the call price of 101.

2. Record conversion of the remainder of the bonds into 10,000 shares of Superhero Industries \(\$ 1\) par common stock on October 1. What would cause the bondholders to convert their bonds into stock?

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Long-term liabilities: Convertible bonds payable Less: Discount on bonds payable. $200,000 (12,000) $188,000