A customer owns a 7-½% ABC convertible bond currently trading at 115. The conversion price is $40. What is the parity price of the common?
A) $46.
B) $28.75.
C) $34.
D) $44.
Answer: A) $46.
Investments MCQ
Debt Securities
A customer owns a 7-½% ABC convertible bond currently trading at 115. The conversion price is $40. What is the parity price of the common?