10. Convertible Bonds (LO2, CFA5) Which one of the following statements about convertible bonds is false?

a. The yield on the convertible bond will typically be higher than the yield on the underlying common stock.

b. The convertible bond will likely participate in a major upward movement in the price of the underlying common stock.

c. Convertible bonds are typically secured by specific assets of the issuing company.

d. A convertible bond can be valued as a straight bond with an attached option.