1. Roth, Inc. issued convertible bonds at their $1,000 par value 5 years ago The bonds currently sell for $1,050. At any time prior to maturity on August 1, 2031, a debenture holder can exchange a bond for 40 shares of common stock. What is the conversion price,?
$1.25
$26.25
$25.00
Not enough information provided
2. Reuth Corporation has 9% convertible debentures that were issued at par of $1000, and currently sell for $750. Each debenture can be converted into 35 shares of common stock. The company's current stock price is $25. What is the conversion value of the bond?
$875
$965
$975
$725
None of the above