Suppose a regulation gets announced that forces all auto manufacturers to power all of their cars with batteries (e.g. Teslas core competency). What do you expect will happen to Teslas share price? What about its convertible bond price?

Group of answer choices

Decrease; increase

Increase; decrease

Increase; increase

Decrease; decrease

Use the following information on a convertible bond issue from for Problems 6 - 12. Issuer: Tesla, Inc. Issue Date: 15 March 2017 Maturity Date: 15 March 2022 Interest: 2.375% payable semi-annually Issue Size: $977,500,000 Issue Price: $1,000 Conversion Ratio: 3.0534 Convertible Bond Price on beginning of day, 18 March 2020: 148.62 (% of par) Share Price on 18 March 2020, market open: 389.00 Share Price on 18 March 2020, market close: 359.01