Questions 19.A company issued convertible bonds with a face value of $ 1,000. Each bond is exchangeable at any time for 25 common shares of the company. It offers a semi-annual coupon rate of 4% and coupons are paid semi-annually. The required rate of return is 5% per semester. The bond has a 10-year maturity. The common stock sells for $ 38. Determine the conversion price for this bond.

Options

40 $ $ 35 $ 45 $ 60 $ 50