XYZ Corporation has $400 million of convertible bonds outstanding. Each bond is convertible into 20 shares of common stock. The conversion price is?

To determine the conversion price of the convertible bonds, it is helpful to look at the total amount of outstanding bonds and how many shares each bond can be converted into.

In this case, XYZ Corporation has $400 million of convertible bonds, and each bond can be converted into 20 shares of common stock. The conversion price can be calculated using the following formula:

[ \text{Conversion Price} = \frac{\text{Total Value of Bonds}}{\text{Total Number of Shares Issuable upon Conversion}} ]

First, we need to compute the total number of shares that could be issued if all the bonds were converted. If we denote the total value of the convertible bonds as $400 million and the number of shares per bond as 20, we can convert this total value in terms of the number of shares:

1. Calculate the total number of bonds: This requires knowing the value of each bond. Although individual bond values are not given, the answer choice indicates that the conversion price will be part of the total bond value.

2. The total number of shares issued upon conversion will be the value of the bonds divided by the bond amount per share.

Assuming we derive the conversion price more directly, we can also rewrite our consideration based