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Coupon: 0% Call Date: July 1, 2008 Call Price: $104.32 Maturity: July 1, 2015 A firm issues the convertible debt shown above. The price of
Coupon: 0%
Call Date: July 1, 2008
Call Price: $104.32
Maturity: July 1, 2015
A firm issues the convertible debt shown above. The price of stock in this company on July 1, 2008 is $28.20. What is the minimum conversion ration that would make a bondholder prefer to convert rather than accept the call price?
A. 41 shares per $1000 principal
B. 35 hares per $1000 principal
C. 37 hares per $1000 principal
D. 32 hares per $1000 principal
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