Conversion Ratio: 220 shares per $1000 principal amount
Call Date: July 1, 2008
Call Price: Par
Maturity: July 1, 2015
A firm issues the convertible debt shown above. The price of stock in this company on July 1, 2008 is $5.15. If the bonds are called on this date, which of the following is the action most likely to be taken by a holder of bond of face value of $10,000?
Convert the bond and accept shares with a value of $11,330.