Answer:
Conversion ratio will be 20 shares
Explanation:
We have given bond value = $1000 per bond
Conversion price = $50
We have to find the conversion ratio
Conversion ratio is the ratio of bond value per bond to the conversion price
So conversion ratio will be equal to [tex]=\frac{bond\ value\ per\ bond}{conversion\ price}=\frac{1000}{50}=20\ shares[/tex]
So conversion ratio will be 20 shares
So option (D) will be correct answer
