If the bonds are trading at 130 5/8 and the common stock is trading at $14.75, the parity price of the common stock is: 13.75, Each bond can be converted at $10.50 per share into common stock based on its par value.
A security that symbolizes ownership in a firm is called common stock. After creditors, bondholders, and preferred stockholders have been paid, whatever assets are left over after a liquidation go to common stockholders. In the market, various kinds of equities are traded.
A form of corporate equity ownership and a kind of security is common stock. Outside of the United States, the words voting share and ordinary share are widely used. In the UK and other Commonwealth nations, they are referred to as equity shares or ordinary shares.
Learn more about common stock here
https://brainly.com/question/25765493
#SPJ4
