question 8 (1 point)\nlisten\nwhen the price of common shares rises above the conversion price of…

question 8 (1 point)\nlisten\nwhen the price of common shares rises above the conversion price of convertible bonds, the bond is selling off the common stock. what doesselling off the common stock mean?\n a) the conversion privilege of the convertible bonds expires.\n b) the convertible bonds are converted into common shares.\n c) the premium paid to acquire the convertible bonds is paid back.\n d) the market price of the convertible bond will reflect the market price of the common shares that it is convertible into.

question 8 (1 point)\nlisten\nwhen the price of common shares rises above the conversion price of convertible bonds, the bond is selling off the common stock. what doesselling off the common stock mean?\n a) the conversion privilege of the convertible bonds expires.\n b) the convertible bonds are converted into common shares.\n c) the premium paid to acquire the convertible bonds is paid back.\n d) the market price of the convertible bond will reflect the market price of the common shares that it is convertible into.

Answer

Brief Explanations:

Convertible bonds can be exchanged for common - shares. When the price of common shares rises above the conversion price of convertible bonds, it becomes profitable to convert the bonds into common shares. 'Selling off the common stock' in this context means converting the convertible bonds into common shares.

Answer:

B. The convertible bonds are converted into common shares.