What is the conversion (or stock) value of each of the following convertible bonds? a. A $1,000-par-value

Question:

What is the conversion (or stock) value of each of the following convertible bonds?

a. A $1,000-par-value bond that is convertible into 25 shares of common stock. The common stock is currently selling for $50 per share.

b. A $1,000-par-value bond that is convertible into 12.5 shares of common stock. The common stock is currently selling for $42 per share.

c. A $1,000-par-value bond that is convertible into 100 shares of common stock. The common stock is currently selling for $10.50 per share.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...