Problem: What is the conversion (or stock) value of each of the following convertible bonds?
1. A $1,000-par-value bond that is convertible into 25 shares of common stock.The common stock is currently selling for $50 per share.
2. A $1,000-par-value bond that is convertible into 12.5 shares of common stock. The common stock is currently selling for $42 per share.
3. A $1,000-par-value bond that is convertible into 100 shares of common stock. The common stock is currently selling for $10.50 per share.