NO.PZ2023120801000014
问题如下：
Assume that a convertible bond has a par value of $1,000,000 and is currently priced at $1,100,000. The underlying share price is $40,000 and the conversion ratio is 25:1. The conversion condition for this bond is:
选项：
A.Parity
Above parity
Below parity
解释：
Correct Answer: C
The conversion value of the bond is 40,000 x 25 = $1,000,000. The price of the convertible bond is $1,100,000. Thus, the conversion value of the bond is less than the bond's price, and this condition is referred to as below parity.
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