A company has a 10% convertible bond with a face value of $100,000

date：2026-01-24 17:13:08 author：admin browse： time View comments Add Collection

A company has a 10% convertible bond with a face value of $100,000

A company has a 10% convertible bond with a face value of $100,000. The conversion ratio is 20 shares per $1,000 bond. If converted, the company issues:

A. 200 shares

B. 1,000 shares

C. 2,000 shares

D. 10,000 shares

Answer: C

Explanation: $100,000 / $1,000 = 100 bonds. 100 bonds × 20 shares/bond = 2,000 shares.