1/ If a $1,000 par value convertible bond has a conversion ratio of 1 bond to 70 shares, the bond conversion price is $14.29.

True

False

2/ A conversion premium is ultimately the additional amount given up to convert the bond to stock.

True

False

3/ Forced conversion refers to the corporation calling a convertible bond. This is ideal when the market price of the stock is above the conversion price by more than a small percentage.

True

False

4/ A "put option" is the right to purchase securities at a predetermined price.

True

False