Final answer:
A convertible bond trading strictly as a straight bond is valued at its par value, focusing on fixed-income characteristics, due to the lack of additional value from the conversion feature.
Step-by-step explanation:
When a convertible bond trades strictly as a straight bond, as if it were not convertible, it is trading at its par value or intrinsic value. This situation occurs when the conversion feature is considered to have no additional value because the stock price is much lower than the conversion price, or due to a lack of confidence in the company's future growth.
In such cases, investors view the bond solely based on its fixed-income characteristics, such as the interest payments and return of principal at maturity, rather than any potential upside from converting into equity.