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a bond that is currently selling for $939.39 has a conversion price of $31.25. if the par value is $1,000, what is the conversion ratio?

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The conversion ratio of a bond that is currently selling for $939.39 and has a conversion price of $31.25 and a par value is $1,000 is 31.8 : 1.

What is the definition of conversion ratio?

For any convertible securities, such as a convertible bond, the conversion ratio is the number of common shares received at the moment of conversion. Convertible debt is a debt hybrid product that has an incorporated option to convert debt into equity in the future.

With regard to the above response, the conversion ratio of a bond is equal to the par value of the bond divided by the conversion price.

Since the par value of the bond, in this case, is $1,000 and the conversion price is $31.25, the conversion ratio is:

$1,000/$31.25 = 31.8.

This means that for every 31.8 bonds, the bondholder can convert them into one share of the company's stock, hence the ratio is 32.8 : 1

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