问题如下:
A convertible bond has following features:
Face value: $ 900,000
Price: $1,000,000
Conversion ratio: 30:1
Price of underlying stock: $30,000
The conversion condition for the bond is:
选项:
A. Parity.
B. Above parity.
C. Below parity.
解释:
C is correct.
Conversion value: 30,000 x 30 = $900,000.
The price of the convertible bond is $1,000,000.
Conversion value < the bond's price, so it's condition is below parity
请问本题中face value指什么?不是应该和face value 比吗?