Jackson Metals, Inc., issued a $1,000 convertible corporate bond. Each bond is convertible to 37 shares of the firm’s common stock. (a) What price must the common stock reach before investors would consider converting their bond to common stock? (Round your answer to 2 decimal places.)

The answer is $27.03

Explanation:

A convertible bond is a debt security that generates interest payments, but can be converted to shares of the issuing company's stock at the bondholder's discretion and can be done at certain times during the bond's life.

The common stock price must be:

Bond price / number of shares receceived

Bond price is $1,000

Number of shares receceived is 37 shares

$1,000/37 shares

=$27.03

yup the answer is