Answer:
1:32
Explanation:
The conversion ratio depends whether or not the common stock price is variable or not. In this case is fixed at $31.25 It do not vary based on the bond current arket price. Thus, this ratio is fixed and determinated at the issuance of the bonds:
1,000 par value / 31.25 share price = 32.00 shares
Each bonds is converted into 32 shares
thus the ratio is 1:32
