A conversion price is defined as:

1. The number of shares per bond received for conversion into stock.

2. A bond that can be exchanged for a fixed number of shares of stock for a specified amount of time.

3. The value of a convertible bond if it could not be converted into common stock.

4. A feature included in the terms of a new issue of debt or preferred shares to make the issue more attractive to initial investors. (wrong answer)

5. A security that gives the holder the right to purchase shares of stock at a fixed price over a given period of time.