As a Finance Analyst, you're working on a project to determine whether your employer, Facebook, should invest in convertible bonds of Snap Inc. Snap Inc. is the owner of Snapchat and Bitmoji and is currently trading at $14.17 per share. Snap Inc. is going to issue $1.8 billion in convertible bonds today (2020). The bonds have a 1.74% coupon rate (paid annually) with a face value of $850. The bonds will mature in 2025 and have a conversation ratio of 43.5.

Based on your analysis, would you recommend that Facebook invest in the convertible bonds? Hint: Calculate the conversion price and conversion ratio to determine your recommendation.

	a.	No, the floor value is the conversion value
	b.	No, the conversion price is greater than the current stock price
	c.	No, the conversion value is lower than the face value of the bond
	d.	A, B, and C
	e.	B and C