Defense Systems Incorporated has convertible bonds outstanding that are callable at $1,070. The bonds are convertible into 33 shares of common stock. The stock is currently selling for $39.25 per share. If the firm announces it is going to call the bonds at $1,070, what action are bondholders likely to take? multiple choice 1 Bondholders will most likely convert their bonds to shares of common stock. Bondholders will most likely allow their bonds to be called. Assume that instead of the call feature, the firm has the right to drop the conversion ratio from 33 down to 30 after 5 years and down to 27 after 10 years. If the bonds have been outstanding for 4 years and