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    Conversion price of a bond

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    Reading Railroad common stock is currently priced at $30, and its 8% convertible debentures (issued at par, or $1,000) are priced at $850. Each debenture can be converted into 25 shares of common stock at any time before 2005. What is the conversion price (CP) and the conversion value of the bond?

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    https://brainmass.com/business/options/conversion-price-of-a-bond-86809

    Solution Preview

    The conversion price of a convertible bond is its face value divided by the number of ...

    Solution Summary

    This solution looks at the conversion price and value of a bond.

    $2.19