ExamTopics Logo
Mail Us[email protected]
Menu
Finra Discussions
exam questions

Exam Series 7 All Questions

View all questions & answers for the Series 7 exam
Go to Exam

Exam Series 7 topic 1 question 27 discussion

Actual exam question from FINRA's Series 7
Question #: 27
Topic #: 1
[All Series 7 Questions]

Bubba buys a bond issued at par with a 5% coupon that is convertible into common stock at $40. The bond increases in value by 20 points.
What is the conversion parity of the stock?

  • A. $25
  • B. $40
  • C. $48
  • D. $50
Show Suggested Answer Hide Answer
Suggested Answer: C 🗳️
$48. A 20-point increase results in a bond value of $1,200. Divide that by the conversion ratio of 25 shares to arrive at $48.
by lolojepu at April 6, 2025, 1:55 a.m.

Comments

Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.
Switch to a voting comment New
Submit Cancel
Currently there are no comments in this discussion, be the first to comment!
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.

SaveCancel