Answer: Yes

**Yes**, these adjustments are correct. When a company announces a stock split: - **Conversion price** is adjusted downward proportionally - **Conversion ratio** is adjusted upward proportionally This maintains the economic value of the conversion feature. For example: - If there's a 2-for-1 stock split: - Conversion price is halved - Conversion ratio is doubled This ensures that the total conversion value remains unchanged, as the bondholder can convert into more shares at a lower price per share, preserving the economic equivalence of the conversion privilege.

Author: LeetQuiz Editorial Team